With the stock market in full meltdown mode, companies reporting great earnings numbers are being totally ignored. The chipmakers are one such place, where great earnings have been met with massive hits to share prices.
While valuations may have been high going in to this correction, for growing companies dealing with more demand than can be met in the short-term, this looks like one of the first places in tech likely for a strong rebound.
Case in point? Broadcom (AVGO). The company reported earnings on Thursday, and saw shares take a massive drop, adding to prior sessions. However, shares have still held up better in recent weeks than the tech stocks and other names.
- Man Who Predicted 2008 Crash: “The Mother of All Crashes is Coming”
If you've watched the movie The Big Short,you've heard of Michael Burry. He was one of the few who no only predicated the 2008 crash but profited from it.
He made $750 million for his investors and $100 million personally when his bet against the housing market paid off. His next big prediction?
He's warning the "mother of all crashes" is coming.
If you have any money in the markets, I urge you to click here and get the exact day of the next stock market crash.
Shares are up 55 percent over the past year, and likely to trend higher thanks to strong earnings and strong prospective earnings in the quarters ahead.
Action to take: Investors may like to pick up shares during this selloff. The recent decline has pushed the stock’s dividend yield to 3.1 percent. It may rise a bit higher in the coming days, but a strong rebound could also lead to quick capital gains. Investors may want to start layering into the trade now.
For options traders, the July 2021 $500 calls should be well past the current market volatility. Last trading for about $17.75, the options can likely deliver high double to low-triple digit returns on a rebound in shares.