CRWD and AVGO sell-off after earnings

What happened: Shares of CrowdStrike (CRWD) and Broadcom (AVGO) plummeted post-earnings. CRWD fell from $785.66 to $617.74 despite strong earnings and guidance, with EPS of $1.10 beating estimates by three cents and revenue up 26.4% YoY. AVGO, after posting record revenue and triple-digit AI sales growth, saw its stock drop 12.59% on June 4 and another 7.92% on June 5, wiping out recent gains.

Market impact: The sell-off affected cybersecurity and semiconductor sectors. CRWD's decline was driven by investor disappointment in guidance, despite strong earnings and a boost from Anthropic's Mythos AI model. AVGO's drop was due to valuation concerns and guidance on AI chip sales, despite impressive quarterly results. Both stocks' declines may indicate a broader reassessment of growth expectations in these sectors.

What to watch next: Upcoming earnings reports from other cybersecurity and semiconductor companies will provide insight into whether CRWD and AVGO's sell-offs are sector-specific or indicative of broader trends. Specifically, watch Palo Alto Networks' (PANW) earnings on June 7 and Micron Technology's (MU) earnings on June 29 for further clarity. Additionally, monitor AI-related news and developments, as they may influence AVGO's stock performance.