Avago Technologies Shares Jumped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Avago Technologies (NAS: AVGO) jumped 10% at the open today after another industry player released strong earnings.
So what:Linear Technology (NAS: LLTC) released earnings of $0.45 per share this morning, topping estimates of $0.39 from analysts. The hope is that this will translate to strong earnings for device maker Avago because both companies rely on industrial customers for business.
Now what: The earnings from Linear might be a good sign, but I would like to hear from Avago before jumping on this kind of move. The company's fiscal first quarter ends in January, so when it reports we should get a good idea if the company is seeing the same kind of inflection point in demand as Linear Technology is seeing. For now I'm going to sit out this move and wait for the company to release earnings.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Motley Fool newsletter services have recommended buying shares of Linear Technology. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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