Seeking Alpha Author Ranjit Thomas joins Cheddar to discuss why he's shorting Broadcom. The semiconductor company has a market cap of $108 billion, yet Thomas believes its share price will drop as much as 30 percent.
Thomas explains that Broadcom is disingenuous in the way it reports its GAAP profits. Reports, he says, aren't being presented to investors in a way that accurately reflects reality. He says it's not considered fraud, but it will eventually cause a collapse in the business.
Plus, Thomas doesn't believe its bid for Qualcomm will be successful. He says Broadcom has built a business on acquisitions and now that it's so big, it needs to set its sights on bigger companies. However, Qualcomm is embroiled in a legal suit with Apple, and Thomas thinks that won't bode well for Broadcom.
Apple CEO Tim Cook said Thursday that the majority of iPhones sold in the U.S. in the current fiscal quarter will be sourced from India, while iPads and other devices will come from Vietnam as the company works to avoid the impact of President Trump’s tariffs on its business. Apple’s earnings for the first three months of the year topped Wall Street’s expectations thanks to high demand for its iPhones, and the company said tariffs had a limited effect on the fiscal second quarter’s results. Cook added that for the current quarter, assuming things don’t change, Apple expects to see $900 million added to its costs as a result of the tariffs.
Visa is hoping to hand your credit card to an artificial intelligence “agent” that can find and buy clothes, groceries, airplane tickets and other items on your behalf.
Skift Editor-In-Chief Sarah Kopit discusses how summer travel plans remain uncertain for most as many international travelers are leery to travel abroad. Watch!
