Broadcom, CrowdStrike both sell-off afterhours on earnings beats

Broadcom sells off 5% despite reporting 48% YoY revenue growth.
CrowdStrike issued a slim beat for Q1 with EPS and revenue both beating consensus by about 2%.
AVGO stock sinks despite raising Q3 guidance.
CrowdStrike announces a 4-for-1 stock split.

Clay Webster FXStreet

Broadcom (AVGO), the $2 trillion semiconductor powerhouse, shed weight afterhours on Wednesday after delivering a solid earnings report that bested Wall Street Consensus. In a similar fashion, cybersecurity major CrowdStrike (CRWD) lost more than 9% despite reporting above the top and bottom line analyst projection.

Broadcom stock sold off more than 5% despite reporting revenue growth of 48% YoY in its fiscal second quarter. The connectivity and infrastructure software firm reported adjusted earnings per share (EPS) of $2.44, $0.04 ahead of consensus, on $22.19 billion in revenue, $70 million above consensus. Those beats appear to have been too slim for investors.

Of Broadcom's full revenue in the quarter, $15.01 billion came from its semiconductors business, up 79% YoY, while software infrastructure revenue rose 9% to $7.18 billion. For fiscal Q3, the company said to expect $29.4 billion in revenue, more than $1 billion ahead of analyst consensus.

CrowdStrike reported adjusted EPS of $1.10, $0.03 better than consensus, on $1.39 billion in revenue, $30 million better than Wall Street expected. The company saw net new annual recurring revenue rise 32% YoY to $256 million in Q1. Management raised its full-year guidance slightly and announced a 4-for-1 stock split.

The stock market's reaction to the earnings releases was in line with many other AI-adjacent stocks during this earnings season. Earlier this week, both Credo Technology Group (CRDO) and Palo Alto Networks (PANW) turned in terrific quarters only to face a cascade of selling by shareholders. Earlier in earnings season, Microsoft (MSFT) and Meta Platforms (META) demonstrated that beating the Street's estimates wasn't enough to forestall a sell-off.

Broadcom and CrowdStrike stock charts

Broadcom stock broke below the 20-period Simple Moving Average (SMA) on its 4-hour chart. That tells us the bearish instinct is real and could lead the share price to move toward the 50-period SMA in short order. The 50-period SMA sits near $434 for the moment.

A break below the 50-period SMA should mean that bears retest the $420 price level. A volume zone sits between $405 and $420, which would make it ideal for bulls to re-enter the trade. Bulls won't regain the advantage until the share price moves back above the 20-period SMA and then the small shelf near $460.

Broadcom 4-hour chart — AVGO 4-hourt stock chart

CrowdStrike fell right through its own 20-period SMA to find support at its 50-period average. That means it's in a worse setup than Broadcom. The 50-period SMA coincides with the resistance from May 22 through 26. Below there lies minimal support at $645 and $620.

CRWD Crowdstrike 4-hour chart June 2026 — CRWD 4-hour stock chart

Author

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

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