Diamonds and Dogs
Chips rebounding thanks to Broadcom (AVGO). Chipmaker, Broadcom is up 7% to a two month high following better than expected earnings. Sales rose 13.4% year over year to $5.06 billion. Datacenter demand is driving their growth while margins and cash generation remain strong. The stock took a hit back in July following news they would acquire Computer Associates. Cowen upgraded the stock with a $255 price target.
The rollercoaster ride at Tesla (TSLA) continues. Where do we start with Tesla? First, the CEO went on a radio show podcast and was seen drinking scotch and smoking a cigar with marijuana in it. Then, this morning the CFO decided to resigned after taking the job a month ago. The CFO took the job a day before CEO Elon Musk sent out a tweet that he was considering taking the company private in a buyout at $420 a share. That tweet triggered a series of events that caused chaos at the company, including several lawsuits filed by shareholders and a subpoena from the SEC. The stock is currently down 7% and down 32% in less than a month.