Broadcom beat meets high hopes

0:00Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. Thanks so much for joining us on this Thursday, September 3rd. I'm Julie Morgan. Broadcom is down 2.1% in pre-market action after offering weaker than expected guidance that overshadowed its third quarter results. For the period ending August 2nd, Broadcom said it earned an adjusted $3.00 and $3.32 per share as revenues soared 86% year over year to $29.59 billion. Analysts had expected the company to earn an adjusted $3.23 per share on $29.45 billion in revenue. Looking ahead, Broadcom said it expects fourth quarter revenue to be approximately $34.8 billion with adjusted EBITDA around 66%. Broadcom said it expected $35.1 billion in fourth quarter sales, according to Bloomberg.

1:03Broadcom CEO said in a statement that demand for their custom AI accelerators and networking continues to be very strong, and that Q3 AI semiconductor revenue grew 221% year over year, and 54% quarter over quarter. They went on to say that in Q4, the momentum continues, and they expect AI semiconductor revenue to accelerate 236% year over year. If you'd like to see a transcript of the earnings call, I'm leaving a link in the show notes section. The Justice Department has widened its investigation into the meat packing industry, requesting information from eight major grocery retailers as beef prices remain close to record levels. The department said this week that the associate attorney general sent letters last month to Amazon, Costco, Walmart, Albertsons, Croger, Public Sandaldy. The request covers six years of data on how the retailers buy beef, their purchasing strategies,

2:05retail prices, profit margins, and assessments of the market. The investigation is part of a broader examination announced by the Justice Department back in May and to possible antitrust violations in the meat packing sector. Some beef sold for an average of $7.11 per pound in July according to the US Bureau of Labor Statistics, remaining near its record despite a modest easing. Chipotle Mexican Grill announced the opening of its first restaurant in Asia. The new location is in Seoul, South Korea. Chipotle noted that South Korea was selected because it is seen as having highly engaged and discerning consumers, a sophisticated restaurant culture, and strong appreciation for authenticity and ingredient quality. Chipotle plans to continue its expansion with two more locations in South Korea by the end of this year, followed by its first restaurant in Singapore in 2027.

3:06Now for a look at a few other articles that are trending, we have a list of the most shorted stocks on Wall Street. PG&E has certainly been in the news this week. The next article says PG&E teams up with Google, Tesla, and Sunrun on a Bay Area Virtual Power Plant. And if you're feeling AI exhaustion, there's an interesting article by our head of quantitative research, Stephen Cress. He's pointing out three health care stocks with 38% EPS growth that could be the cure. A couple of items on our catalyst to watch for the day. Tesla will hold an invite only CyberCab Launch event in Austin, Texas. The CyberCab is the company's purpose-built Robotaxi that does not have a steering wheel or pedals. Reports indicate riders may be able to request the CyberCab through Tesla's existing Robotaxi app in Austin. And Match Group will hold an investor-day event hosted by the CEO to discuss the tender

4:08business. On Wall Street's stock index futures are in mixed territory. Crude Oil is up 0.6% at $91 a barrel. Brent Crude is up 0.4% at $96. The FTSE 100 is down 0.1%, and the DAX is down 0.2%. And I have one item for you on today's economic calendar at 8.30 a.m. jobless claims.