Broadcom Slides on Disappointing AI Outlook, CrowdStrike Falls, Petco Drops | Stock Movers

Why It Matters

The selloffs underscore how lofty expectations can amplify share-price volatility for AI and cybersecurity leaders and signal potential near-term pressure on sentiment in technology and consumer sectors. Weak guidance from major names could ripple through markets as investors reassess valuations and growth assumptions.

Summary

Broadcom plunged roughly 6–10% in after-hours trading after an earnings outlook failed to meet sky-high investor expectations despite a recent surge that added about $270 billion in market value. CrowdStrike fell about 10% after the close as its second-quarter revenue guide of $1.43–$1.44 billion merely matched analyst forecasts and fell short of the elevated beats investors have come to demand. Petco dropped about 12% after missing profit forecasts and threatening to wipe out its year-to-date gains amid continued consumer-discretionary volatility. All three moves reflect profit-taking and investor sensitivity to guidance after steep recent rallies in AI, cybersecurity and retail stocks.

Original Description

Today's biggest winners and losers in the stock market.

On this episode of Stock Movers:

- Broadcom (AVGO) shares fell in extended trading after the company delivered a disappointing forecast for artificial intelligence chip revenue, signaling it’s efforts to gain ground in the burgeoning industry are going more slowly than anticipated. AI semiconductor revenue will be $16 billion in the fiscal third quarter, which runs through July, the company said in a statement Wednesday. Analysts predicted $17.2 billion on average, according to data compiled by Bloomberg.

- CrowdStrike (CRWD) shares fell in extended trading after the security software company reported its first-quarter results and gave an outlook. While the results beat expectations and the full-year forecast was raised on key metrics, the report wasn’t strong enough to extend the recent strength in the stock.

- Petco (WOOF) saw its shares tumble post-market after the pet health and wellness company’s second-quarter adjusted Ebitda forecast came in below the average analyst estimate.

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Broadcom Slides on Disappointing AI Outlook, CrowdStrike Falls, Petco Drops