Issue No. 11 • Thursday, June 4, 2026
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THE TRADING ADDICT
NEWSLETTER
by Maria Helmick
» Daily Trading Update · Day 158 · Tap for live dashboard
Here is how our AI trading robot Phil performed today — a mixed day, new all-time high.
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Broadcom’s AI Business Is Booming — But Wall Street Wanted More
Good numbers, and the stock still dropped. Here is why.
Broadcom did not report a bad quarter. Actually, the numbers were strong. The company beat Wall Street’s expectations, posted record quarterly revenue, and showed that its AI chip business is still growing at a crazy pace.
But the stock still dropped after earnings.
The lesson: sometimes a company can deliver good numbers, and the stock can still fall because Wall Street already expected something even bigger.
The Simple Version
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That is not weak. That is huge AI demand. So why did the stock still drop? Because traders wanted more.
Good Guidance Was Not Good Enough
Broadcom guided above expectations, but the stock had already run hard before the report. That means investors were not just looking for a beat.
They wanted a bigger raise.
They wanted more excitement.
They wanted management to make the 2027 AI story look even stronger.
Broadcom is still targeting more than $100 billion in AI chip sales in 2027, which is already a massive number. But Wall Street was hoping the company might raise that target.
This was not really about Broadcom having a weak business. It was about the stock already being priced for perfection.
AI Demand Is Still Very Real
Nvidia is still the leader in AI chips, but Broadcom has carved out a powerful lane by building custom AI chips and networking products for major customers — including Google, Anthropic, OpenAI, and Meta.
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The Big Demand Number
$30B+
Broadcom booked more than $30 billion in AI semiconductor orders during the quarter — almost three times the AI revenue it shipped. |
In plain English: customers are still lining up. Demand is not the problem.
This Is the Market Being Picky
✅ Revenue beat.
✅ Earnings beat.
✅ AI revenue exploded.
✅ Next-quarter guidance above expectations.
But the stock still dropped because the market wanted a monster surprise. That is why earnings trades can be dangerous — a company can do well and still go down if traders were already expecting perfection.
Broadcom did not fail. It just did not give Wall Street enough extra fireworks.
Maria’s Bottom Line
Broadcom did not have a bad quarter. AI revenue was huge, demand is still strong, and the company is working with the biggest players in AI. The problem was not the business — the problem was the stock already ran hard, and Wall Street wanted even more.
For me, this is not an AI slowdown story. This is a great company, expensive expectations story.
I would not chase it just because the AI story is strong. Let the stock cool off, let the market digest the report, and then see if buyers come back in.
Educational only. Not financial advice.
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CrowdStrike’s 4-for-1 Split Puts CRWD Back in the Spotlight
The split does not change the company’s value, but it may change how traders interact with the stock.
CrowdStrike just gave Wall Street another reason to keep watching CRWD.
The cybersecurity company announced a 4-for-1 stock split, which means shareholders will receive three additional shares for every one share they own. The split is scheduled for shareholders of record as of June 25, 2026, with the additional shares expected to be distributed after the close on July 1, 2026. CRWD is expected to begin trading on a split-adjusted basis on July 2, 2026.
Simple version: one share becomes four shares, and the price per share adjusts lower. The total value of the position should stay the same at the time of the split. Same pie, just sliced into smaller pieces.
Why Traders Care
Stock splits are mostly cosmetic, but traders still pay attention. A lower share price can make a stock feel more accessible to retail investors, make position sizing easier for smaller accounts, and create more activity in the options market.
That matters with CRWD because CrowdStrike is already sitting in one of the strongest market themes: cybersecurity, AI security, cloud protection, and enterprise software.
The company also reported strong fiscal Q1 2027 numbers — revenue of $1.39 billion, up 26% year over year, and annual recurring revenue of $5.51 billion, up 24% year over year.
The Risk
The risk is chasing the headline. A stock split can bring attention, but it does not automatically create a good trade. If a stock has already had a big run, the market may have already priced in a lot of good news. That means traders still need to respect the chart, the valuation, the earnings reaction, and the overall market environment.
Maria’s Bottom Line
CrowdStrike’s 4-for-1 split does not change the company’s value, but it may make the stock easier for more traders to access. And no, the split does not magically make you richer just because your share count goes up — you get more shares, but the price adjusts lower.
The split itself is not a reason to chase. The real story is still CRWD’s cybersecurity growth, AI demand, valuation, and whether buyers support the stock after the news settles.
The split is the headline. The chart reaction is what matters next.
Educational only. Not financial advice. Source: CrowdStrike Investor Relations, fiscal Q1 2027 earnings release.
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