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Midday movers: Broadcom, Mobileye shares fall; Samsara rises

Published 2024/09/06, 14:02
Updated 2024/09/06, 18:10
© Reuters
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(Updated - September 6, 2024 12:06 PM EDT)

Investing.com -- US stock futures were lower on Friday after a mixed labor market report muddled forecasters' projections on the size of the Federal Reserve's next monetary policy decisions, with intense disagreement over a 50 bps vs 25 bps reduction later this month. Many investors now believe the smaller rate cut is most likely, but the debate isn't over.

Shares in Broadcom (NASDAQ:AVGO) slumped by more than 9% in premarket trading after the group's current-quarter sales guidance slightly disappointed investors' expectations. The firm projected that it would deliver $14 billion in revenue in its fourth quarter, just under estimates of $14.04 billion, according to LSEG data cited by Reuters. The forecast was seen as a sign of possible sluggishness in the company's non-AI-related operations.

Other chip stocks, including artificial intelligence-darling Nvidia (NASDAQ:NVDA) and peer Advanced Micro Devices (NASDAQ:AMD), declined following Broadcom's report. Marvell (NASDAQ:MRVL) Technology (MRVL) and Micron Technology (NASDAQ:MU) were also lower ahead of the opening bell.

Mobileye (MBLY) shares fell by more 7%. Bloomberg News earlier reported that Intel (NASDAQ:INTC) was mulling over options for its holdings in the automated driving systems group.

UiPath (NYSE:PATH) shares initially surged after the company raised its annual guidance and reported second-quarter results that beat Wall Street estimates. Moreover, the software maker increased its share buyback program by $500 million. Shares reversed midday, dragged down by weakness in broader markets.

Samsara (IOT) shares jumped 15% following better-than-anticipated second-quarter returns from the application software firm. The group also hiked its annual outlook.

DocuSign (NASDAQ:DOCU) posted better-than-anticipated second-quarter earnings and revenue but its guidance failed to impress investors. Shares were higher by 2.75%.

Super Micro Computer (NASDAQ: NASDAQ:SMCI) fell 7% after JPMorgan analysts cut their rating on the stock from 'overweight' to 'neutral', citing increased uncertainty.


Additional reporting by Louis Juricic

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