what is the broadcom takeover of my stock

How has Broadcom's stock triple over the last 5 years?

Follow him on Twitter for more updates! Broadcom 's ( NASDAQ:AVGO) stock has tripled over the past five years as the wireless chipmaker once known as Avago aggressively expanded through big acquisitions. Avago gobbled up the original Broadcom in 2016, assumed its name, and acquired the network equipment maker Brocade in 2017.

Should you buy Broadcom stock after its recent rally?

It even nearly took out Qualcomm (NASDAQ: QCOM) with a hostile bid before the Trump administration blocked the takeover. Investors might be reluctant to buy Broadcom after its multiyear rally, but the stock still looks surprisingly cheap at 16 times forward earnings, and it pays an attractive forward yield of 3.3%.

Is Broadcom the perfect stock for income investors?

Nevertheless, for investors who are looking to generate income from their portfolio paired with a little growth along the way, Broadcom is a decent pick. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service.

Does Broadcom have enough liquidity to cover its debt?

Broadcom still owed $44 billion in debt at the end of the third quarter due to its aggressive acquisitions, but just $800 million of that debt matures within a year. That short-term debt can be easily covered by its $13.9 billion in liquidity, which includes $8.9 billion in cash and a $5 billion revolving credit facility.

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Did Broadcom buy VMware?

Broadcom Software Group will rebrand and operate as VMware. Broadcom, which designs, develops and supplies semiconductor and infrastructure software, will acquire VMware, an enterprise software company.

Who's buying VMware?

BroadcomBroadcom will buy VMware in a cash-and-stock transaction valued at $61 billion, based on the closing price of Broadcom common stock on May 25, 2022, the companies announced Thursday.

What companies does Broadcom own?

Through the combination of industry leaders Broadcom, LSI, Broadcom Corporation, Brocade, CA Technologies and Symantec, the company has the size, scope and engineering talent to lead the industry into the future..

Is VMware stock a buy?

VMware has received a consensus rating of Hold. The company's average rating score is 2.48, and is based on 10 buy ratings, 11 hold ratings, and no sell ratings.

Who is Broadcom buying next?

VMware(NYSE: VMW), a leading innovator in enterprise software, today announced an agreement under which Broadcom will acquire all of the outstanding shares of VMware in a cash-and-stock transaction that values VMware at approximately $61 billion , based on the closing price of Broadcom common stock on May 25, 2022 .

Does Dell own Broadcom?

Broadcom Corporation is an American fabless semiconductor company that makes products for the wireless and broadband communication industry. It was acquired by Avago Technologies in 2016 and currently operates as a wholly owned subsidiary of the merged entity Broadcom Inc.

What is Broadcom famous for?

Broadcom is a worldwide leading provider of solutions for wireless LAN infrastructure, developing SoC solutions for 802.11 Wi-Fi routers, service provider gateways and enterprise access points.

Why is Broadcom stock falling?

Slowing Growth Broadcom's poor stock performance comes as the company faces slowing earnings growth in fiscal 2019. Analysts are looking for revenue growth in 2019 to slow to just 3%, down from over 17.6% this year. Meanwhile, earnings growth is forecast at only 3.5% in 2019.

What products does Broadcom make?

Broadcom Inc. is an American designer, developer, manufacturer and global supplier of a wide range of semiconductor and infrastructure software products. Broadcom's product offerings serve the data center, networking, software, broadband, wireless, and storage and industrial markets.

What is the outlook for VMware?

The 16 analysts offering 12-month price forecasts for VMware Inc have a median target of 142.50, with a high estimate of 149.00 and a low estimate of 120.00. The median estimate represents a +21.61% increase from the last price of 117.18.

Does VMware pay dividends?

VMWARE (NYSE: VMW) does not pay a dividend.

Is VMware overvalued?

Vmware Inc has a current Real Value of $147.26 per share. The regular price of the company is $128.79. At this time, the company appears to be undervalued....USD 128.79 0.62 0.48%LowNext ValueHigh141.16145.06148.96

How big is Broadcom?

With a current market capitalization of about $110 billion, Broadcom is big enough to absorb any, and probably several, of these rivals. The market caps of those potential targets are, also according to Yahoo Finance as of 1pm Friday:

Who is Mark Kolakowski?

Follow Twitter. Mark Kolakowski is a business consultant, freelance writer, and business school lecturer. He has been an expert in investing, and a market watcher for 40-plus years.

What happened

Shares of Broadcom ( AVGO 1.38% ) climbed 8.3% on Friday after the chipmaker said it would return more cash to shareholders in the year ahead.

So what

Broadcom's revenue rose 15% year over year to $7.4 billion in its fiscal 2021 fourth quarter. Revenue in the company's semiconductor solutions and infrastructure software divisions increased 17% and 8%, respectively, to $5.6 billion and $1.8 billion.

Now what

Broadcom expects to earn revenue of roughly $7.6 billion in the first quarter of fiscal 2022. The company also guided for an adjusted EBITDA margin of about 61.5%.

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When did Broadcom buy Symantec?

The "new" Broadcom subsequently expanded into the infrastructure software market by buying CA Technologies in 2018 and Symantec 's ( NASDAQ:NLOK) enterprise security business in 2019.

What is Broadcom semiconductor?

Broadcom is a "fabless" semiconductor company that outsources its production to third-party foundries. This makes it different from IDMs (integrated device manufacturers) like Texas Instruments ( NASDAQ:TXN) and Skywork s ( NASDAQ:SWKS), which both manufacture their own chips with their in-house foundries. Fabless chipmakers face potential production bottlenecks at third-party foundries, so they're generally more exposed to the global chip shortage than IDMs.

Is Broadcom a chipmaker?

Broadcom was previously known as Avago Technologies, a Singapore-based chipmaker that primarily expanded via big acquisitions. Avago acquired the original U.S. chipmaker Broadcom in 2016, adopted its name, and relocated its headquarters to the United States in 2018.

Is Broadcom facing a supply crunch?

Broadcom isn't facing a supply crunch like other fabless chipmakers yet, since its chips are primarily manufactured with older processes rather than the newer processes that have been crowded with orders for higher-end chips. Starting last May, Broadcom also implemented tighter reviews of its backlog and supply chain to carefully balance supply and demand across its main end markets.

Is Broadcom still going up?

Broadcom had a great run over the past few years, but I believe it will still head higher over the long term. It's well diversified, isn't struggling with any major chip shortages, pays out reliable dividends, and is expanding its margins even as it continues to pursue new acquisitions.

Does Broadcom pay dividends?

Its free cash flow growth has decelerated this year, but it still easily covered its dividends with less than half of its FCF over the past 12 months. It currently pays a forward dividend yield of 2.9%.

Does Broadcom have a semiconductor business?

Broadcom's semiconductor business recovered this year as the pandemic-related headwinds waned and the cloud, data center, and wireless markets heated up again. It also likely profited from robust sales of its wireless chips to Apple ( NASDAQ:AAPL), which accounted for 15% of its revenue last year. Those strengths easily offset its slower sales of data storage chips to enterprise customers.

How much dividends did Broadcom pay in 2020?

Broadcom paid out $1.3 billion in dividends in each of the first three quarters of 2020. Those payments were easily covered by its free cash flow, which has risen consistently over the past year. Metric. Q1 2020. Q2 2020. Q3 2020. Free Cash Flow. $2.2 billion. $3.1 billion.

Who is Broadcom's top customer?

Broadcom's top customer is Apple (NASDAQ: AAPL), which accounted for 20% of its revenue last year. That's still a sticky partnership: Back in January, Apple agreed to buy what Broadcom thinks will work out to roughly $15 billion in wireless components from Broadcom over the next three and a half years. That amount should equal nearly ...

How fast is Broadcom growing?

Broadcom's revenue rose 8% in fiscal 2019 thanks to the robust growth of its data center chip and infrastructure software businesses. Its adjusted EPS, which excludes its acquisition-related expenses, grew 2%.

What is Broadcom fabless?

Broadcom is a "fabless" chipmaker, meaning it outsources the production of its chips to another foundry, which is less capital-intensive than producing chips internally. TSMC, the world's largest contract chipmaker, manufactures most of Broadcom's chips.

What is Broadcom's core business?

Broadcom's core semiconductor business, which produces a wide range of wireless chips for various industries, generated 77% of the company's revenue last year. The remaining 23% mainly came from its infrastructure software unit.

Is Broadcom a chipmaker?

Broadcom 's ( NASDAQ:AVGO) stock has tripled over the past five years as the wireless chipmaker once known as Avago aggressively expanded through big acquisitions. Avago gobbled up the original Broadcom in 2016, assumed its name, and acquired the network equipment maker Brocade in 2017.

When did Broadcom acquire Symantec?

The new Broadcom expanded into the infrastructure software market by acquiring CA Technologies in 2018 and Symantec's enterprise security business in 2019. It even nearly took out Qualcomm (NASDAQ: QCOM) with a hostile bid before the Trump administration blocked the takeover.

Networking infrastructure is in high demand, and this high-yield dividend stock is a decent play

Nicholas has been a writer for the Motley Fool since 2015, covering companies primarily in the consumer goods and technology sectors. He is also the founder and president of Concinnus Financial, a Registered Investment Advisor based in Spokane, WA. He enjoys the outdoors up and down the West Coast with his wife and their Humane Society-rescued dog.

More clouds (of the digital variety) in the forecast

As with most other parts of the semiconductor industry, a sales slump that started in 2018 was just giving way to a new wave of demand when the coronavirus hit.

New competition, new debt, same old story

I like Broadcom's takeover of infrastructure software to complement its hardware business. It helps create a reason for customers to return, as there is no shortage of competitors gunning for its networking empire.