Diamonds and Dogs
No chip slowdown at Broadcom (AVGO). The chipmaker is up 10% to new highs following better than expected earnings. Management expects business to bottom in the second quarter driven almost entirely by the seasonal drop in wireless sector (ipones?). Looking at the second half of the year, Broadcom is confident the semiconductor business will resume very meaningful growth. Plenty of upgrades with price targets of $305, $325, and $330.
No more photoshop at Adobe Systems (ADBE). Adobe is down 4% following earnings. The earnings were actually good with sales up 24.1% to $2.58 billion. But disappointing guidance for the second quarter has the stock lower. I guess with less parents using photoshop to get their kids into college, sales may slow.