Shares of Irvine chipmaker Broadcom Corp. fell 7% Tuesday on speculation the company could issue a warning on third-quarter results, according to a Barron’s report.
Broadcom’s shares have fallen sharply this week with a recent market value of about $9 billion. The stock is down by about a third since July.
Some hedge fund managers have been shorting Broadcom shares, betting the stock has further to fall, according to a report on Barron’s.com.
They think Broadcom could issue a warning that third-quarter results may come in below Wall Street expectations, according to the report.
In July, the company cautioned that third-quarter gross margins could come in at 49.5% to 51.5%, down from 53.8% in the second quarter.
