The stock lost $2.67, or 8.7 percent, to $28.06 in midday trading.

Late Thursday, the Irvine, Calif.-based company said its third-quarter earnings fell by half from a year ago. Revenue slid 3 percent.

Results beat analyst expectations, but the company warned that revenue should remain flat from the third quarter going into the holiday season.

"It will be a little uncertain what's going to happen around Christmas with consumer demand," President and CEO Scott A. McGregor said on a conference call with analysts. "We're not economists, so, you know, we can't forecast this as well as maybe some of them can. But there's a little concern about whether Santa's coming this year or not."

Broadcom also cautioned that operating expenses will be $20 million higher in the fourth quarter, with nearly half to come from legal costs related to a stock options backdating case.

Following the report, Baird analyst Tristan Gerra predicted Broadcom's order growth will slow until the first half of 2010 before a rebound takes hold. He maintained a "Neutral" rating on the stock.

Separately, Jefferies analyst Adam Benjamin reduced his fiscal 2010 earnings estimate on expectations of higher operating expenses. But he maintained a "Buy" rating, saying the company is "well positioned for revenue growth in 2010 and beyond driving improving profitability." He called Broadcom his favorite large-cap pick.

Meanwhile, analyst Daniel Amir kept his "Buy" rating, saying the company is doing better than the competition and gaining market share in mobile and consumer markets. He said Broadcom's chips for broadband and mobile markets should drive growth in 2010.

Shares of Broadcom have ranged from $13.15 to $31.20 over the past year.

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