Tech stocks to watch: Broadcom Ltd (NASDAQ: AVGO) and VMware, Inc.(NYSE: VMW)

Broadcom Ltd 

Broadcom Ltd (NASDAQ: AVGO) stock corrected over 2.5% in the after-hours session on August 24^th, 2017 as investors are expecting better results.

Still, Broadcom managed to report a net revenue rise of 18% yoy to $4,463 million, during the third quarter of 2017. Gross margin improved to 48.2% of net revenue, as compared to 47.2 percent of net revenue, in the earlier quarter, and gross margin of 47% of net revenue, in the prior corresponding period.

Operating income improved to 14.5% of net revenue as compared to 11.3% of net revenue, in the earlier quarter, and from an operating loss of $264 million, or 7% of net revenue, in the prior corresponding period.

Broadcom has a cash, cash equivalents and short term investments balance of $5,449 million as of the third fiscal quarter end from $4,454 million in the earlier quarter. They generated $1,656 million in cash from operations and spent $255 million on capital expenditures.

Broadcom stock delivered outstanding returns of over 44.3% in this year to date and has further 10% upside with an average analyst target price of $280.68 (based on 24 analysts; Source: tipranks.com)

VMware, Inc

VMware, Inc.(NYSE: VMW)  stock reported a decent revenue rise of 12.2% yoy to $1.90 billion during the second quarter of 2018, boosted by their broad-based strength across their product portfolio in all three geographies. As a result, the stock surged over 2.6% in the pre-market session on August 25^th, 2017. License revenue rose 13.7% yoy to $732 million, an increase of 13.7% from the prior corresponding period.

GAAP operating income rose 5% yoy to $338 million, during the quarter while Non-GAAP operating income surged 15% yoy to $585 million. The group enhanced their Operating cash flows to $620 million during the quarter while free cash flows reached $563 million.

The group authorized $1 billion for stock repurchases through August 31, 2018, while $900 million is remaining from their ongoing $1.2 billion stock repurchase program for fiscal 2018.

The group also launched major updates across their VMware™ vRealize™ Cloud Management Platform in June enabling clients to manage and provision at scale — including compute, network, storage, and application services across multi-cloud environments.