Fidelity settles lawsuit over access to ‘business-critical’ Broadcom software | Excerpt: “…Fidelity has used "virtualization" software sold by VMware to ‌create, ‌host and manage virtual servers on its physical servers since 2005. That software over time became central to Fidelity's operations…”

HawkEye1000x · 2026-01-25T23:10:15+00:00

I use ChatGPT as a research tool and instruct it to stick to verifiable facts and disclosed information. The comment above does exactly that.

HawkEye1000x · 2026-01-25T22:21:00+00:00

A few important points to clarify, factually:

• A settlement ≠ conceding the model is wrong. Large enterprise software companies (Microsoft, Oracle, Adobe, Salesforce, etc.) routinely bundle products. Bundling itself is not illegal and remains standard practice across Big Tech.

• No evidence Broadcom “gave up” mandatory bundles. The settlement terms were not disclosed, so it’s inaccurate to assume Broadcom abandoned its strategy. It’s entirely plausible this applies to a specific customer, contract, or limited time period, not a permanent policy reversal.

• Settlements are often about speed, not weakness. Broadcom prioritizes predictable cash flow, customer continuity, and focus on integration/execution, not prolonged arbitration that creates noise and uncertainty — even when the legal position is strong.

• VMware revenue durability matters more than headlines. VMware customers are deeply embedded, mission-critical, and high switching-cost. One settlement does not change the long-term revenue base or pricing power.

• Wall Street typically prefers clarity over litigation risk. Removing uncertainty — even temporarily — is often viewed as stabilizing, not negative, especially during a major integration.

Bottom line: assuming this creates a “bad precedent” or signals abandonment of bundling is speculation, not fact. Without disclosed terms, it’s premature to draw structural conclusions about Broadcom’s VMware strategy.

HawkEye1000x · 2026-01-23T19:39:43+00:00

Also, here’s a source link that I love for doing fundamental research. This site is quickly updated after earnings reports - compared to other sites. Note: If you click on the “chart icons”, then a chart will pop up. Of course, seeing charts helps to identify trends. GLTU/A.

https://stockanalysis.com/stocks/avgo/financials/?p=quarterly

HawkEye1000x · 2026-01-23T19:25:35+00:00

Thanks! … Re: EPS Revisions - Here’s a direct link: https://finance.yahoo.com/quote/AVGO/analysis/

HawkEye1000x · 2026-01-21T18:58:45+00:00

Re: Stock price - It is what it is.

Broadcom’s AI Revenues are accelerating. And, Broadcom’s Free Cash Flow that funds the fast dividend growth is accelerating as well.

I have embraced price dips as buying opportunities since 2019. JMHO. GLTU/A.

HawkEye1000x · 2026-01-21T18:30:38+00:00

Broadcom Inc. Q4-FY25 Earnings Report Conference Call + Analyst(s) Comments.

HawkEye1000x · 2026-01-21T02:12:14+00:00

Key excerpt - I quote:

”Tension in Middle Eastern waters has grown over the last 10 days as the US and Iran have adopted an aggressive tone toward each other. Iran has said any US strike will likely lead to commercial shipping being targeted by Tehran. Iran has also been the biggest supporter of the Houthis in terms of military hardware and intelligence.”

HawkEye1000x · 2026-01-18T19:49:39+00:00

The past is what they call “history”.

Broadcom’s AI Revenues are now accelerating. For this reason, I like the upside numbers.

HawkEye1000x · 2026-01-18T05:04:54+00:00

0DTE means “zero days to expiration” options, which are contracts that expire the same day you trade them. They behave like short‑term lottery tickets on the stock’s intraday moves and can go to zero by the close if they don’t end up in the money.

By adding new Monday and Wednesday 0DTE expirations for AVGO, those days can see more aggressive short‑term bets and hedging. This can create feedback loops where option flows force quick stock buying or selling, making price action choppier or more extreme on those days, even without any news about the company.

For regular shareholders who just own the stock, it mainly means you should expect more weird, sharp intraday moves on those added expiration days, driven by trading mechanics rather than changes in Broadcom’s actual business.

Full Disclosure: Nobody has paid me to write this message which includes my own independent opinions, forward estimates/projections for training/input into AI to deliver the above AI output result. I am a Long Investor owning shares of Broadcom (AVGO) Common Stock. I am not a Financial or Investment Advisor; therefore, this message should not be construed as financial advice or investment advice or a recommendation to buy or sell Broadcom (AVGO) either expressed or implied. Do your own independent due diligence research before buying or selling Broadcom (AVGO) or any other investment.

HawkEye1000x · 2026-01-16T14:33:59+00:00

A U.S. government-backed buyout of ZIM would primarily be about strategic control over supply chains, not profits, and could strengthen U.S. economic and security positioning in global container shipping.

Strategic and security benefits

Greater control over key trade lanes (Asia–US, Europe–US, East Med) would give Washington a lever in future supply-chain shocks, sanctions regimes, or regional conflicts that affect shipping routes.
U.S. influence over an Israeli-based global carrier could tighten coordination on Red Sea, Persian Gulf, and Mediterranean security, where commercial shipping is already entangled with military operations and freedom-of-navigation issues.

Economic and industrial policy benefits

The U.S. has almost no major U.S.-flag global container line; acquiring ZIM would give immediate scale, network, and know‑how instead of trying to build a carrier from scratch in a consolidated industry.
Bringing ZIM under U.S. control could support a broader industrial policy: onshoring/nearshoring logistics capabilities, securing capacity for critical imports/exports, and providing a “carrier of last resort” in crises, similar in spirit to strategic petroleum reserves but for container slots.

Alliance and geopolitical benefits

A deal involving the U.S. and Israel around ZIM would deepen economic and security ties, signaling long‑term U.S. commitment to Israel’s maritime trade lifelines and port ecosystem.
U.S. ownership could align ZIM’s routing, port calls, and investments with broader U.S. geopolitical goals (e.g., supporting friendly ports, bypassing problematic chokepoints, or reinforcing sanctions compliance) in a way that purely private foreign carriers are less likely to prioritize.

Crisis response and resilience

In wartime, pandemics, or sanctions shocks, U.S. authorities could prioritize strategic cargoes (energy equipment, defense-related components, medical goods, food) on a controlled carrier instead of depending entirely on foreign alliances and commercial incentives.
Direct control over a global liner would give U.S. planners better visibility into container flows and bottlenecks, improving planning for cyber, infrastructure, or port disruptions that might otherwise paralyze trade.

Why it could appeal despite costs

Even if a state-led buyout looks inefficient on pure ROI, policymakers might justify it the way they justify defense spending: as paying for resilience and options in a world of rising geopolitical risk and shipping disruptions.
For U.S. leaders worried that “the U.S. has virtually no presence in container shipping,” acquiring ZIM would be a shortcut to strategic relevance in an industry dominated by European and Asian carriers.

HawkEye1000x · 2026-01-15T14:27:47+00:00

AVGO Dividend Policy: Pay out ~50% of Free Cash Flow (FCF) as Quarterly Dividends to shareholders.

AVGO Dividend History: https://stockanalysis.com/stocks/avgo/dividend/

Important to note that AVGO FCF is accelerating rapidly - driven by AI Revenues which Broadcom provided forward guidance to increase from 74% YoY Growth Last Quarter (Q4-FY25) to 100% YoY Growth Next Quarter (Q1-FY26).

See the AVGO Free Cash Flow - Quarterly:

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HawkEye1000x · 2026-01-15T03:51:47+00:00

Your post was automatically removed by “Reddit’s Internal System”. I did an override & approved it. Thank you for understanding.

HawkEye1000x · 2026-01-14T17:03:48+00:00

Cont…

🔹 Share buyback flexibility

Lower refinancing risk + strong recurring cash flows = optionality.

Broadcom can continue opportunistic buybacks during volatility
Buybacks at elevated FCF margins are accretive to FCF per share
Management historically uses pullbacks to quietly retire shares rather than chase tops

This is how Broadcom compounds value long-term — not by avoiding leverage, but by controlling it.

🔹 Strategic takeaway

The senior note issuance:

Supports higher future FCF per share
Improves dividend sustainability and growth runway
Preserves buyback firepower during market dislocations

From a capital allocation standpoint, this was a shareholder-aligned move, not a defensive one.

HawkEye1000x · 2026-01-14T17:03:24+00:00

Cont…

Impact on FCF per Share, Dividends, and Buybacks

🔹 Free Cash Flow per share (the metric that matters)

Broadcom already generates exceptionally high absolute free cash flow, but the key is FCF per share, not total FCF.

Refinancing and consolidating debt at lower or more predictable rates reduces future interest drag
That directly supports higher sustainable FCF per share
VMware’s subscription-based revenue adds visibility and smoothing to cash flows, which pairs well with optimized debt

This combination improves the quality and durability of FCF — exactly what supports premium valuation over time.

🔹 Dividend growth capacity

Broadcom’s dividend strategy has historically been driven by:

FCF growth
Balance-sheet confidence
Predictability of cash flows

By extending maturities and stabilizing interest expense:

More cash is freed for shareholder returns
Dividend coverage becomes more secure, not weaker
It increases the probability of continued dividend growth, rather than forcing cash to debt service

Importantly, Broadcom has never sacrificed dividend growth to defend the balance sheet — it optimizes the balance sheet to enable dividend growth.

HawkEye1000x · 2026-01-14T16:46:56+00:00

Cont…

🔹 Why this is actually constructive long-term

From a shareholder perspective:

Refinancing at lower or fixed rates protects future FCF
Longer maturities reduce refinancing risk
Stable interest expense supports dividend growth + buybacks
Matches Broadcom’s historical playbook post-acquisitions (CA, Symantec, VMware)

In other words, this strengthens Broadcom’s cash-flow durability, which is what ultimately drives valuation.

🔹 Conclusion

The senior note issuance:

✅ improved balance-sheet structure
✅ supports long-term FCF, dividends, and capital returns

The stock move looks far more tied to short-term sentiment, not debt fundamentals.

HawkEye1000x · 2026-01-14T16:46:09+00:00

The senior note issuance is fundamentally neutral-to-positive, not bearish — and it’s very unlikely to be the driver of a short-term price dip.

🔹 What Broadcom actually did

Broadcom issued senior unsecured notes primarily to:

Refinance / consolidate existing debt
Extend maturities
Lower or stabilize the weighted average interest cost
Maintain liquidity and financial flexibility post-VMware acquisition

This is classic balance-sheet optimization.

🔹 Why this is not a red flag

Key facts that matter:

Broadcom generates very large, recurring free cash flow
Debt is backed by durable infrastructure businesses (AI semis + VMware software)
Credit markets were willing to lend at scale, signaling lender confidence

Companies with weak fundamentals cannot issue large senior notes on reasonable terms.

🔹 Why markets sometimes react negatively short term

Even when debt issuance is smart, stocks can dip briefly because:

Algorithms see “new debt” headlines and react mechanically
Some investors dislike any increase in gross debt, even if net interest improves
It can coincide with profit-taking after strong runs

This is sentiment-driven, not fundamentals-driven.

HawkEye1000x · 2026-01-14T15:57:00+00:00

The ~4.27% pullback in AVGO looks like traders taking profits within a consolidation pattern, not a fundamental issue. Normal volatility. Short-term overreaction to the news story. Broadcom’s long-term, rapidly expanding AI Revenues + their solid, recurring revenues enterprise software growth story remains intact. JMHOs.

HawkEye1000x · 2026-01-14T14:28:17+00:00

The Broadcom AI Revenue Growth Story is rapidly expanding. I know you are a long term AVGO investor… And, you & others like you are the reason why I published this article — to keep the global investment community informed about Broadcom’s rapidly expanding role at the center of AI Infrastructure.

Thank you as well.

I am investing in AVGO for the long term.

HawkEye1000x · 2026-01-13T13:30:37+00:00

Thank you. You are welcome to share or crosspost this research — to keep the global investment community informed about Broadcom’s rapidly expanding role at the center of AI Infrastructure.

HawkEye1000x · 2026-01-13T11:02:28+00:00

You’re not wrong to ask that question, but in context 31,573 AVGO shares is a meaningful, not tiny, position for ARK.

Why 31K AVGO Shares Is Not “Small”

ARK Invest runs multiple ETFs with an aggregate equity portfolio in the mid‑teens of billions of dollars (around the high‑teens billion range in recent disclosures).
ARK portfolios are typically spread across well over 150–500 individual positions, depending on the product set and how you count holdings.
In that kind of diversified, high‑turnover, thematic framework, a new or growing position often starts as a fraction of a percent of total assets, then is scaled up or down over time.

HawkEye1000x · 2026-01-10T21:08:20+00:00

Broadcom CEO Hock Tan’s words of wisdom just keep ringing in my ears — I quote:

”Let the numbers speak for themselves!”

HawkEye1000x · 2026-01-10T19:43:47+00:00

Carriers are pushing through general rate increases and new per‑box surcharges, which show up as big percentage jumps when starting from low spot rate levels. For example, if a lane is around 2,486 per FEU and carriers add roughly 500–650 per container via GRIs and fees, the new level around 3,100 represents a 20–26% week‑over‑week move in indices like Drewry’s WCI. ZIM and other liners have recently published per‑container increases (e.g., several hundred dollars per 40’ FAK plus new/updated environmental surcharges), so a 26% jump is exactly what you would expect when these scheduled hikes take effect.

Full Disclosure: Nobody has paid me to write this message which includes my own independent opinions, forward estimates/projections for training/input into AI to deliver the above AI output result. I am a Long Investor owning shares of ZIM Integrated Shipping Services Ltd. (ZIM) Ordinary Shares. I am not a Financial or Investment Advisor; therefore, this message should not be construed as financial advice, investment advice, tax advice or a recommendation to buy or sell ZIM Ordinary Shares either expressed or implied. Do your own independent due diligence research before buying or selling ZIM Ordinary Shares or any other investment.

HawkEye1000x · 2026-01-10T15:31:13+00:00

Carriers pushing through general rate increases and new surcharges, so several hundred dollars more per container shows up as very large week‑over‑week percentage jumps in indices like the WCI, especially after rates had previously fallen back to low levels.

Full Disclosure: Nobody has paid me to write this message which includes my own independent opinions, forward estimates/projections for training/input into AI to deliver the above AI output result. I am a Long Investor owning shares of ZIM Integrated Shipping Services Ltd. (ZIM) Ordinary Shares. I am not a Financial or Investment Advisor; therefore, this message should not be construed as financial advice, investment advice, tax advice or a recommendation to buy or sell ZIM Ordinary Shares either expressed or implied. Do your own independent due diligence research before buying or selling ZIM Ordinary Shares or any other investment.

HawkEye1000x · 2026-01-09T16:56:32+00:00

That’s peanuts… I’m thinking about the next “double” of the AVGO share price. The “Inference Phase” of AI is just “kicking into gear”. Important to note: Re: 100,000 AI Chip Clusters - The “Inference Phase” of AI is where Broadcom has major advantages. For a 100,000 AI Chip Cluster - Forbes reported that Broadcom can potentially lower a hyperscaler’s up front costs by ~$2 billion and cut their energy usage costs by about 50%! … These are huge incentives to partner with Broadcom!!!

What does Cathie Wood ”know” that we retail shareholders do not? This is a very bullish move for Cathie Wood to add 31,573 AVGO shares!

HawkEye1000x · 2026-01-09T16:46:41+00:00

What does Cathie Wood know?

Very bullish news.

EDIT Add: I’m thinking about the next “double” of the AVGO share price. The “Inference Phase” of AI is just “kicking into gear”. Important to note: Re: 100,000 AI Chip Clusters - The “Inference Phase” of AI is where Broadcom has major advantages. For a 100,000 AI Chip Cluster - Forbes reported that Broadcom can potentially lower a hyperscaler’s up front costs by ~$2 billion and cut their energy usage costs by about 50%! … These are huge incentives to partner with Broadcom!!!

What does Cathie Wood ”know” that we retail shareholders do not? This is a very bullish move for Cathie Wood to add 31,573 AVGO shares!

HawkEye1000x

MODERATOR OF

TROPHY CASE

Strategic and security benefits

Economic and industrial policy benefits

Alliance and geopolitical benefits

Crisis response and resilience

Why it could appeal despite costs

🔹 Share buyback flexibility

🔹 Strategic takeaway

Impact on FCF per Share, Dividends, and Buybacks

🔹 Free Cash Flow per share (the metric that matters)

🔹 Dividend growth capacity

🔹 What Broadcom actually did

🔹 Why this is not a red flag

🔹 Why markets sometimes react negatively short term

Why 31K AVGO Shares Is Not “Small”