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Trade War Fears Deflate Broadcom Stock’s Valuation

Trade War Fears Deflate Broadcom Stock’s Valuation

Fiscal 2019 has been an interesting year for Broadcom (AVGO). Its revenue has fallen due to weak demand in the wireless communications market, but its profit margins have risen due to declining costs. While Broadcom is succeeding in improving its margins, profit is falling in dollar terms because of declining revenue.