AVGO - Broadcom's Acquisition of VMware: A Major Growth Catalyst
2023-07-07 06:14:00 ET
Broadcom 's (NASDAQ: AVGO) stock price declined in 2022 due to various factors, including the Federal Reserve's interest rate hikes and inflation, which led investors to assign lower valuations to stocks.
But concerns about a slowdown in chip demand also played a part, as most analysts believed the chip industry ended its boom cycle in 2021. Also, Broadcom's pending acquisition of VMware (NYSE: VMW) was a factor, as many investors were concerned about the deal falling through.
Broadcom's stock returns this year through May showed only a slight increase compared to the returns of the S&P 500 . However, on May 19, there was some great news when VMware's management notified the Securities and Exchange Commission that both companies agreed to extend a May 26 deadline for completing their deal to Aug. 26. In addition, the deadline can be extended to Nov. 26, if necessary.
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Broadcom's Acquisition of VMware: A Major Growth Catalyst