Broadcom (Nasdaq:BRCM) Faces Short-Term Pressure on Lack of Revenue Guidance, Expense Concerns

Until more clarity emerges on the expenses of Broadcom (Nasdaq:BRCM), along with more visibility on future revenue, the stock will be under short-term selling and price pressure on its shares.

FBR Capital analyst Craig Berger said in a note, “Broadcom reported solid fourth-quarter financial results and first-quarter revenue and margin guidance, although higher first-quarter operating expense guidance and a lack of meaningful revenue guidance upside may cause some near-term profit taking.”

Even so, Berger is positive on the company in the long term, saying, “Broadcom continues to ramp product cycles and outgrow most competitors, with competitive advantages in product development velocity and integration, particularly in ‘combo’ chips, where its high smartphone market share and choice iPhone and iPad exposure are the envy of many.”

Broadcom closed Wednesday at $43.79, down $2.60, or 5.59 percent.