Shares of Broadcom (NASDAQ: AVGO) declined 4% in Thursday’s after-hours trading, following the semiconductor and infrastructure software maker’s release of its report for the second quarter of fiscal year 2025 (ended May 4).
Broadcom’s second-quarter earnings edged by Wall Street’s expectation and revenue was in line with the consensus estimate. Third-quarter revenue guidance essentially met the Street’s expectation.
So why did Broadcom stock modestly decline following the release? It comes down to failing to meet investors’ high expectations.