CAPS Rating: 4 out of 5

VMware is a leader in software for virtual computing, allowing companies to integrate and manage their cloud infrastructure.


Player Avatar stockgripes (99.18) Submitted: 1/29/2013 12:50:37 PM : Outperform Start Price: $77.74 VMW Score: -4.96

Going forward, there is a lot of competition in this market, MS, and others are trying to nip away the market share. However, VMW was able to maintain it's lead position for a while and I expect them to do so in forseable future.

Member Avatar MrOneHundred (30.54) Submitted: 2/4/2013 2:54:07 PM
Recs: 0


I agree.

VMWare actually "reported a 2.7% increase in fourth-quarter earnings, topping analysts' average expectations," but the stock still plummeted ~15% because of a slight decrease (percentage wise) in revenues forecast. The company also cut 900 jobs, but while that sounds bad, I see that as a good financial move to keep the company performing as it has done. The sell off of shares was way over done, in my opinion. I'm expecting a run up of $90/share, but will be selling at about $85.

My one hesitation is competition from Microsoft's new HyperV. I read the article from MS's website, but I'm not sure it will be a major game changer yet. Although, the fact that it comes free with the OS does make it an attractive alternative to VMWare's vSphere. It just seems to be lacking certain essential qualities that would keep vSphere ahead of the game.

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