It was an identical story for Costco and Broadcom on Thursday. Both firms beat earnings expectations but saw their share prices fall barely. Still, investors may have to be comfortable with the proven fact that Costco is up about 52% yr thus far and Broadcom is up about 66% as of Thursday’s close (with an after-hours gain of 10% at press time).
Costco highlighted gold (yes, Costco sells gold bars), home furnishings, sporting goods and hardware as key areas of growth. E-commerce sales increased 13% year-over-year.
Broadcom focused on developing its custom AI chips. That’s probably a superb place to begin considering AI sales are up 220% year-over-year! Broadcom CEO Hock Tan said: “We see AI as an opportunity over the next three years. Huge specific hyperscalers have begun their respective journeys to develop their own custom AI accelerators.”
To compare US tech firms (like Oracle) with Canadian counterparts, read my article on the subject The Best Tech Stocks in Canada at MillionDollarJourney.com.
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The US economy is the US stock market
At first glance, it’s logical to assume that the worth of a rustic’s largest firms (measured by the market capitalization of its stock markets) depends directly on its economic performance (measured by GDP).
But remember: the stock market shouldn’t be the economy! The US has an enormous economy, but it surely has a much larger share of worldwide investment money.
A rustic’s largest firms can sell services and products outside its borders. Currently, investors are willing to pay way more for a similar profits from an American company than from firms in most other places on this planet. This is as a result of many aspects. First and foremost, nonetheless, is the view that American firms represent a wonderful long-term opportunity to extend profits in comparison with firms headquartered elsewhere.
It’s interesting that despite widespread concerns, investors seem quite confident that America can proceed to earn money America’s decline and speculation that the US dollar might be in trouble every single day now.
