The final session of the week saw red dominate Wall Street screens, as stocks slid broadly following a renewed tech-led sell-off. • Rivian Automotive stock is approaching key resistance levels. What’s behind RIVN new highs?Shares of Broadcom Inc. (NASDAQ:AVGO) , one of the market's most closely watched artificial intelligence plays, plunged more than 11% despite topping Wall Street's quarterly expectations.Pressure on the AI theme carried over from Thursday, when Oracle Corp. (NYSE:ORCL) shares sank 11% aft ...

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Company Performance - Broadcom Inc. reported fourth-quarter revenue of $18.02 billion, exceeding analyst estimates of $17.49 billion [2] - The company achieved adjusted earnings of $1.95 per share for the fourth quarter, surpassing analyst expectations of $1.86 per share [2] - Broadcom's board approved a 10% increase in the quarterly cash dividend to 65 cents per share, payable on December 31 to shareholders of record as of December 22 [3] Market Trends - U.S. stocks experienced a decline, with the Nasdaq Composite falling more than 350 points, and the S&P 500 dropping 1.04% to 6,829.12 [1] - In commodity markets, oil prices increased by 0.1% to $57.65, while gold decreased by 0.1% to $4,310.70 [6] - European shares also fell, with the eurozone's STOXX 600 declining by 0.53% [7] Stock Movements - cbdMD Inc. shares surged 126% to $1.42 after regaining compliance with NYSE American listing standards [9] - Canopy Growth Corp. shares rose 38% to $1.56 due to reports of potential relaxation of federal marijuana regulations [9] - Zedge Inc. shares increased by 43% to $3.48 following better-than-expected quarterly financial results [9] - Applied Therapeutics Inc. shares dropped 44% to $0.12 after an acquisition announcement [9] - Tenaya Therapeutics Inc. shares fell 35% to $0.89 after announcing a $60 million public offering [9] Regional Market Performance - Asian markets closed higher, with Japan's Nikkei gaining 1.37% and Hong Kong's Hang Seng surging 1.75% [10]

Company Performance - Broadcom Inc. reported fourth-quarter revenue of $18.02 billion, exceeding analyst estimates of $17.49 billion [2] - The company achieved adjusted earnings of $1.95 per share for the fourth quarter, surpassing analyst expectations of $1.86 per share [2] - Broadcom's board approved a 10% increase in quarterly cash dividend to 65 cents per share, payable on December 31 to shareholders of record as of December 22 [3] Market Trends - U.S. stocks experienced a decline, with the Nasdaq Composite falling over 350 points, and the S&P 500 dropping 1.04% to 6,829.12 [1] - Consumer staples shares increased by 0.3%, while information technology stocks fell by 2.5% [1] - European shares also declined, with the eurozone's STOXX 600 down 0.53% [7] Commodity Prices - Oil prices increased by 0.1% to $57.65, while gold prices decreased by 0.1% to $4,310.70 [6] - Silver fell by 4.8% to $61.475, and copper dropped by 3% to $5.3380 [6] Stock Movements - cbdMD Inc. shares surged 126% to $1.42 after regaining compliance with NYSE American listing standards [9] - Canopy Growth Corp shares rose 38% to $1.56 due to reports of potential relaxation of federal marijuana regulations [9] - Zedge Inc. shares increased by 43% to $3.48 following better-than-expected quarterly financial results [9] - Applied Therapeutics Inc. shares fell 44% to $0.12 after acquisition plans were announced [9] - Tenaya Therapeutics Inc. shares dropped 35% to $0.89 after announcing a $60 million public offering [9] Asian Market Performance - Asian markets closed higher, with Japan's Nikkei gaining 1.37% and Hong Kong's Hang Seng surging 1.75% [10]

Market Overview - Pre-market futures are flat, with the Dow up +110 points and the Russell 2000 up +2 points, while the Nasdaq is down -103 points and the S&P 500 down -2 points [1] Company Insights - Broadcom's CEO Hock Tan expressed concerns about lower-than-expected AI product orders for the next year, leading to a -5% drop in the company's stock despite a robust earnings report [2] Economic Indicators - The upcoming Employment Situation report from the U.S. Bureau of Labor Statistics (BLS) is highly anticipated, with the last report showing +119K new jobs created in September and an unemployment rate of +4.4% [3][4] - The average monthly job creation over the last four months is only +44K, indicating a decline in the labor market, which is insufficient to offset retirements [4][5] - The Consumer Price Index (CPI) report for November is also awaited, with the last recorded inflation rate at +3.0%, marking a significant point in the economic narrative [6][7] - The trend in inflation rates shows a pattern of lower highs and lower lows, with the most recent high at +3.0% in September 2023 [7] - The upcoming data is crucial as it may influence the Federal Reserve's decisions, with uncertainty surrounding economic direction as GDP growth and inflation rates are projected positively through 2026 [8]

Core Viewpoint - Broadcom's stock is experiencing a significant decline of over 10% following its earnings report, despite a strong performance in 2025, where it gained more than 55% year-to-date and over 160% since April's low due to tariffs [1][4]. Financial Performance - Broadcom reported fiscal fourth-quarter sales of $18 billion, exceeding expectations, and earnings per share rose to $1.95, beating the anticipated $1.87 [9]. - The company increased its quarterly dividend by 10% to 65 cents per share [9]. Market Reaction - The stock's decline is attributed to a sales outlook that fell short of high market expectations, leading to the largest intraday drop in about eight months [4]. - CEO Hawk Tan's cautious commentary during the earnings call raised concerns among investors, particularly regarding the company's AI product backlog of $73 billion, which is expected to be shipped over the next six quarters [5][8]. AI Revenue Outlook - Investors were looking for clarity on AI revenue forecasts, but the company did not provide specific guidance for 2026, describing it as a "moving target" [7][8]. - There are concerns about tightening profit margins due to AI product sales, despite a significant order of $11 billion from Anthropic disclosed by the CEO [8]. Analyst Sentiment - Despite the stock's decline, analysts remain optimistic, with several raising their price targets significantly, indicating continued confidence in Broadcom's growth potential, particularly in the AI sector [10][12]. - Analysts predict that the AI business could see a year-over-year growth of approximately 100% in the January 2026 quarter [11].

Core Insights - The article discusses the latest trends and developments in the investment banking sector, highlighting key financial metrics and market movements. Group 1: Financial Performance - Investment banks have reported a significant increase in revenue, with an average growth of 15% year-over-year, driven by strong trading volumes and advisory fees [1]. - The total assets under management (AUM) in the sector have reached $5 trillion, reflecting a 10% increase compared to the previous year [1]. Group 2: Market Trends - There is a growing demand for sustainable investment products, with ESG (Environmental, Social, and Governance) funds seeing inflows of $200 billion in the last quarter alone [1]. - Mergers and acquisitions activity has surged, with a 25% increase in deal volume, indicating a robust market environment for investment banking services [1]. Group 3: Regulatory Environment - Recent regulatory changes are impacting the operational landscape, with new compliance requirements expected to increase operational costs by approximately 5% for major firms [1]. - The article notes that investment banks are adapting to these changes by enhancing their compliance frameworks and investing in technology solutions [1].

Core Insights - Broadcom (AVGO) reported fourth-quarter fiscal 2025 non-GAAP earnings of $1.95 per share, exceeding the Zacks Consensus Estimate by 4.3% and increasing 37.3% year over year [2][8] - Revenues rose 28.2% year over year to $18.02 billion, surpassing the Zacks Consensus Estimate by 2.94% [2][8] - AVGO shares experienced a decline of over 5% following the earnings report, despite a 128.8% appreciation over the past 12 months compared to the Zacks Computer & Technology sector's 25.4% return [2] Financial Performance - Semiconductor solutions revenues, accounting for 61.5% of net revenues, reached $11.07 billion, a 35% increase year over year, driven by a 74% surge in AI revenues [3] - Infrastructure software revenues, making up 38.5% of net revenues, increased 19% year over year to $6.94 billion [3] - Non-GAAP gross margin was 78%, up 100 basis points year over year, while adjusted EBITDA rose 34% year over year to $12.22 billion, with an adjusted EBITDA margin of 67.8%, up 310 basis points [4] Balance Sheet & Cash Flow - As of November 2, 2025, cash and cash equivalents stood at $16.18 billion, up from $10.72 billion as of August 3, 2025 [5] - Total debt was $65.14 billion, slightly up from $64.23 billion as of August 3, 2025 [5] - Cash flow from operations was $7.70 billion, compared to $7.17 billion in the previous quarter, with free cash flow at $7.47 billion, up from $7.02 billion [5] Dividend Information - On September 30, 2025, AVGO paid a cash dividend of 59 cents per share, totaling $2.80 billion, and raised its quarterly dividend payout by 10% to 65 cents per share [6] Guidance - For the first quarter of fiscal 2026, Broadcom expects revenues of $19.1 billion, with AI revenues projected to double year over year to $8.2 billion, driven by strong demand for custom AI accelerators and Ethernet AI switches [7][8] - The adjusted EBITDA margin is anticipated to be 67% for the first quarter of fiscal 2026 [9]

Core Insights - Marijuana stocks are experiencing increased trading activity and optimism due to potential reform measures expected in 2026, including home grow legislation in Florida and possible executive actions from Donald Trump to reschedule cannabis [1][2][3] Industry Overview - The anticipation of reform is boosting investor sentiment, with speculation driving the potential for stock price increases in the cannabis sector [2] - Several bills are set to be voted on in 2026, which could significantly impact the performance of leading cannabis stocks [2] Company Highlights - **Ascend Wellness Holdings, Inc.**: Engages in the cultivation, manufacture, and distribution of cannabis products. Recently announced a partnership with Mister Jones in New Jersey, marking a significant milestone under new state regulations [4][6] - **Ayr Wellness Inc.**: Involved in the cultivation and retail of cannabis products. The company is undergoing restructuring under the Companies' Creditors Arrangement Act, transitioning core assets to a new acquisition vehicle owned by senior noteholders [7][9] - **Trulieve Cannabis Corp.**: Operates as a cannabis retailer, cultivating and distributing cannabis products. Recently announced a private placement of 10.5% Senior Secured Notes due 2030, raising US$100 million [9][11]

Market Overview - Stocks on Wall Street experienced a significant decline, with the Dow Jones Industrial Average dropping over 200 points (0.5%) to 48,462, the S&P 500 falling by 1.1%, and the Nasdaq losing 420 points (1.8%) [1] - Despite a previous rise to a new all-time intraday record of 48,886, the market sentiment shifted negatively due to concerns surrounding AI investments [1][3] Company-Specific Developments - Broadcom's shares fell more than 10% after the company warned of reduced future margins on AI system sales, raising concerns about the profitability of AI investments [2] - Other chip stocks, including Advanced Micro Devices, saw a decline of 1%, while a broader chips index fell by 1.5% following Oracle's weak forecast [2] - Nvidia's shares slipped by 1.9% amid reports of the company evaluating an increase in H200 chip production to meet demand from China [9] - Lululemon Athletica's stock surged by 12% after raising its annual profit forecast, despite the departure of CEO Calvin McDonald [9] - Cannabis companies listed in the US saw stock increases, with Canopy Growth rising by 23% and Tilray Brands climbing by 30% following reports of potential regulatory changes by President Trump [10] Economic Indicators - Policymakers expressed concerns about inflation remaining too high to justify lower borrowing costs, despite traders pricing in a total of 50 basis points of rate cuts by the end of 2026 [6]