Broadcom Sinks 13% Post-earnings Release; 3x Short DLC Gains 38%
$Broadcom(AVGO)$ sank up to 13.8% overnight after reporting earnings post-US market close on Wednesday (3 June).
Despite reporting another strong quarter, investor sentiment turned negative as Broadcom’s guidance for AI semiconductor revenue came in below market expectations.
As of 11am Singapore time, Broadcom was trading down about 12.5%. Amplifying the move, the $AVGO 3xShortSG280420(9FOW.SI)$ surged close to 38%, with the $AVGO 3xLongSG280420(Z8TW.SI)$ down a similar magnitude.
Investors who view the selloff as an overreaction and anticipate a rebound during regular US trading hours may consider the $AVGO 3xLongSG280420(Z8TW.SI)$ to capture potential upside.
Conversely, those expecting continued weakness may consider the Broadcom 3x Short DLC (9FOW).
With US Stock DLCs listed on SGX tracking overnight US price movements, these instruments provide investors with opportunities to react to after-hours market events before the US market opens while gaining magnified exposure to US single stocks.
See the full list of DLCs on dlc.socgen.com.
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