I’d seen several comments and posting re the merits of this acquisition and the premium it would command in share price, $2000 was the number often bantered around. Should I be concerned about the number of customers finding alternatives, leaving the VMW platform, thus never realizing this premium?
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So what if a few whales die, plenty of others in the hock tan fishing net that are more than covering that loss.
What don’t you get about dr-g dealing?
The addicts will pay any price.
" And regarding customers leaving, it should worry shareholders only if customers in Top 2000 list are leaving."
Yeah, all the large customers are happy and not trying to get away....
https://www.techtarget.com/searchdatacenter/news/366610359/ATT-sues-Broadcom-over-VMware-support-licensing
AVGO for $2000! Hope you didn’t go and finance Don’t finance a shiny new Lambo !
Broadcom paid 172% of profit as dividend last year. This is serious financial engineering. The market won't crash till Nov, wink wink. Don't want to trigger the censors. After that all bets are off.
AVGO $2000..are you smoking crack at SF shack ? Mob boss will show losses and not pay any taxes. $69 billion went straight into bay.
Falling feels like flying for some time. Then there is a splash when you reach the ground. 185 is the peak. It will bottom around 40 to 30.
$200 this year. $300 next year. Seems about right. You peoples are genius.
Broadcom EPS for the quarter ending April 30, 2024 was $0.44, a 45.77% decline year-over-year.
Broadcom EPS for the twelve months ending April 30, 2024 was $2.33, a 27.13% decline year-over-year.
Broadcom 2023 annual EPS was $3.3, a 24.31% increase from 2022.
Broadcom 2022 annual EPS was $2.65, a 76.87% increase from 2021.
Broadcom 2021 annual EPS was $1.5, a 136.97% increase from 2020.
Yes
$2000 was NOT the original number. AVGO offered 45% above market, valuing VMW at below 600. Not a single competitors offered to VMW despite shopping around like beggars.
If you plan based on $1500 (150 after split) you already makes >3x
Temp migrants should look at their financial situation and see if they can still stay solvent when the stock crashes to 40 or 30. Temps that bought 2 electric cars and 3 houses at the peak in 2021 and 2022 should see if they will still pay the loans when stocks and houses crash at the same time. Electric cars have already crashed. Texas and Arizona and Florida housing markets have already crashed. Temps should just cash out and send money back home.
AVGO is a double top. NVDA is a double top. SMH is a clear head and shoulders pattern and we are at the neck line of the right shoulder. These are basic chart patterns even a novice can see.
And regarding customers leaving, it should worry shareholders only if customers in Top 2000 list are leaving. We had 300k customers. He doesn’t care about rest 298K. That is partners problem now. Those 298 don’t affect big numbers.
AVGO stock is 2 parts. HW and SW. HW is cyclical. And it’s in down cycle now. It has always been cyclical and HT hates that. That is why he bought SW. SW is keeping prices up. When HW comes back it will go up again. Not to $200 but maybe $180. Before that there might be a slump caused by mild recession etc. Don’t expect it to be long recession so it will be less painful. His HW business is set. Now he has to get revenue and earnings from VMW that he promised. So far he is getting the revenue as per plan. He is going to get better earnings by kicking out more people. So looks like he is going to keep analysts happy on SW side also.
Sell some at $180.
Don't sell and crash the stock price. It kinda ruins the party for the rest of us who are selling at a high price.
AVGO will see $200 again. Stonks only go up!
No one really understands the PE ratios and Price to sales ratio and other fundamentals of the stock market anymore. The meta bubble is being blown since 1980s when the interest rates were at 15%. They cut the rates over 40 years to zero in 2020. Since we have hit the zero bound, there is no more juice left. They can do less than zero by completely destroying the government bond market just like Japan. Bank of Japan now owns 7% of their stock market. So, the government will keep buying all bonds and all stocks and eventually the government will be the full economy. Not sure if the US is going the way of Japan into stagnation for 4 decades. You will either get a crash and rebuild stronger or just go sideways in a stagnation pattern. These are the only options.
At 10 times revenues, to give you a 10-year payback, I have to pay you 100% of revenues for 10 straight years in dividends. That assumes I can get that by my shareholders. That assumes I have zero cost of goods sold, which is very hard for a computer company. That assumes zero expenses, which is really hard with 39,000 employees. That assumes I pay no taxes, which is very hard. And that assumes you pay no taxes on your dividends, which is kind of illegal. And that assumes with zero R&D for the next 10 years, I can maintain the current revenue run rate. Now, having done that, would any of you like to buy my stock at $64? Do you realize how ridiculous those basic assumptions are? You don’t need any transparency. You don’t need any footnotes. What were you thinking?
iconic quote from the dotcom mania that is especially relevant to the equity market today. Scott McNealy was the CEO of Sun Microsystems
Broadcom is at 22 times revenues.
The fed is going to cut by 50 basis points tomorrow. This triggers a crash generally. This is the signal to everyone that the music stopped.
The whole thing is a Ponzi scheme. By the time the market figures out that the VMware buy was a mistake he will be on to the next acquisition that will drive the share price up further.
This is not about products, innovation, fostering customer relationships or stickiness….it’s about understanding the stock market and how analysts really rate companies. It’s financial engineering. No one knows when the music stops.