Broadcom Slides on Disappointing AI Outlook, CrowdStrike Falls, Petco Drops

Today's biggest winners and losers in the stock market.

On this episode of Stock Movers:

- Broadcom (AVGO) shares plunged by the most in more than 16 months after the company’s forecast for sales of its artificial intelligence chips disappointed investors. Though the company is making headway in pivoting to AI customers, it’s up against outsized investor expectations. Broadcom had added roughly $270 billion in market value over the five trading sessions before the earnings report, fueled by AI optimism.

- Lululemon (LULU) lowered its annual forecast, underscoring the challenge that incoming Chief Executive Officer Heidi O’Neill faces in revitalizing the upscale yogawear brand. The company now sees revenue for the full fiscal year in a range of $11 billion to $11.15 billion, lower than the previous guidance and below the average of estimates compiled by Bloomberg. Lululemon’s net revenue outlook for the current quarter was also below expectations. Shares slipped in aftermarket trading.

- Five Below (FIVE) shares fell after the discount retailer beat first-quarter earnings expectations and raised its full-year profit guidance but signaled caution over the consumer in the months ahead. “We’re looking at the world that our customers are living in: with rising fuel costs, with very sticky inflation, with a somewhat—soft labor market. And we think a piece of that pain that they are feeling wasn’t felt in the first quarter purely because of tax proceeds,” Chief Financial Officer Daniel Sullivan said in an earnings call.

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