Why META (Nasdaq: META) and Broadcom (Nasdaq: AVGO) Are Tumbling Today

Everything seemed great a day ago.

The storm cleared. The markets exploded higher.

Tariffs were dropped to 10% for the next 90 days for hopeful negotiations. All of which allowed wary investors to breathe again. The European Union announced a similar 90-day reprieve – just days before launching tariffs against the U.S.

Then, just when we thought the storm was gone, markets got hit again.

This time, it’s because of the standing uncertainty with 125% tariffs on China.

“The increase in China tariffs but delay in others leaves the effective tariff rate at 23%, at historical highs,” Michael Gapen, Morgan Stanley chief U.S. economist said, as quoted by CNBC. “Delays help, but do not reduce uncertainty.”

It’s Why the Broader Markets are Slipping Again 

It’s also why Meta (NASDAQ:META | META Price Prediction) and Broadcom (NASDAQ:AVGO) are down big.

Meta Platforms 

Undervalued shares of Meta Platforms are down about 5%, or by $27.56 on the day.

For one, it’s down with the broader market. Two, it’s down after a whistleblower just told a U.S. Senate committee that Meta undermined U.S. national security to win Beijing favorability – not good.  It’s also down after analysts at Piper Sandler cut its price target on the e-commerce giant to $610 from $775 a share.

“The revision of the price target reflects a cautious stance due to Meta’s exposure to E-commerce and China. As a result, the revenue estimates for 2025 and 2026 have been lowered by 2% and 4%, respectively,” as noted by Investing.com.

Broadcom 

Shares of Broadcom are down about 6%, or by $10.80 on the day.

Granted, the company just announced a new $10 billion buyback program. “The new share repurchase program reflects the board’s confidence in our strong cash flow generation and allows us to deliver value to our stockholders,” said Kirsten Spears, Broadcom’s CFO.

However, it’s now getting caught up in the broad market pullback, and on news that Cantor Fitzgerald cut its price target on AVGO to $300 from $250.

Over the long term, AVGO is still an attractive opportunity. 

According to Cantor Fitzgerald, “Despite ongoing macroeconomic uncertainties such as tariffs and market volatility, Broadcom’s business outlook remains steady. The company continues to experience strong demand for AI, which is deemed essential for hyper-scale computing providers. Additionally, the non-AI semiconductor business appears to have reached a low point, and the software segment is showing stability,” as noted by Investing.com.

Contact [email protected] for any questions or corrections.