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Broadcom Traders Bet Stock Will Fall 12% Further

Michael Kramer

Broadcom Inc.'s ( AVGO) recent acquisition of CA Inc. ( CA) for $18.9 billion caught many investors by surprise, and Broadcom's stock was punished as a result. The move by Broadcom to buy CA comes after Broadcom was unable to acquire Qualcomm Inc. ( QCOM) earlier this year. The reports of the new deal caught many investors off guard, given the differing business that Broadcom, a chipmaker, and CA, a software company, have.