A technology trade that will be somewhat market neutral is
the combination of shorting VMWare (VMW) and being long International Business
Machines (IBM). If the market stays in a trading pattern you will be able to
profit on both the long and the short side of this trade.
After being bearish on VMware, Inc. (VMW) for quite some time now, it is interesting to see the stock off sharply this morning following the earnings release. The company reported revenues of $456 million compared to consensus expectations of $458.6 million. The non-GAAP earnings were directly in line with consensus at 23 cents for the [...]
VMW develops top notch virtual technology, good enough to be the best in their space right now. That said, their management team has really done them a huge disservice in consistently missing their earnings numbers and giving poor guidance. The recent firing of their CEO bodes poorly for the company over the next year, but it is minimal compared to the prospect of Microsoft becoming increasingly competitive (at least on a cost basis) with VMware technology. Further, It wouldn't be surprising to see EMC shareholders (who own 86% of the stock) look to sell their shares and at least make a ...
7/9 - "In our opinion CEO Diane Greene parted ways as the VMW Board (dominated by EMC Management) decided not to spin out VMW for now. We do not believe that the departure of Ms. Greene has anything to do with reduction in full year revenue guidance...New CEO Paul Maritz is an outsider and we feel is unlikely to command the loyalty of the existing core VMW team which would be somewhat negative for VMW."
"We believe VMW’s competitive position remains very strong and the reduction in full year guidance has no relevance with any increase in expected competition from Microsoft’s Hyper-V."
"We...
7/9 - "Several analysts this morning actually asserted that replacing Greene with former Microsoft exec Paul Maritz should be considered a positive development for the company. “It was not a completely unexpected move,” writes Citigroup’s Brent Thill. “We believe Greene did an admirable job taking the company from zero to over $1.3 billion in 2007 revenue, but a different leader seems needed for the next leg in VMW’s story.”
"All across the Street, analysts slashed estimates on the company. Lehman’s Israel Hernandez, for instance, dropped his target on the stock to $41, from $75, and gave ...
7/8 - "Greene's replacement is former Microsoft (Nasdaq: MSFT) bigwig and Intel (Nasdaq: INTC) executive Paul Maritz...Maritz was responsible for some of Microsoft's most successful products, such as Windows 95, Windows NT, and the entire Office line in the late 1990s. He was part of the five-person brain trust that effectively ran Redmond...After a short adjustment period, I believe that the company will get right back on the hypergrowth track again, ready to take on Maritz's former employer throwing its best stuff VMware's way."
"There are murky waters ahead, and a P/E ratio of about 67 ...
7/10 - "VMware, Inc. (VMW) which is 80% owned by EMC Corporation (EMC) made headlines this week when the company fired their CEO (Diane Green) and lowered their 2008 outlook. While the change in leadership may have caught many by surprise, guidance lower should have been expected given the difficult economic environment and the announcement by Microsoft Corporation (MSFT) that they will be competing in the same space. ZachStocks has covered VMW in the past as concerns over a high valuation set the stock up as a potential short. Those who held short positions in the stock this week are lik...
VMware, Inc. (VMW) which is 80% owned by EMC Corporation (EMC) made headlines this week when the company fired their CEO (Diane Green) and lowered their 2008 outlook. While the change in leadership may have caught many by surprise, guidance lower should have been expected given the difficult economic environment and the announcement by [...]
Business software maker VMware Inc warned on Tuesday that 2008 revenue growth will fall short of expectations and said it has replaced its chief executive, sending its shares tumbling 30 percent. VMware said it expects revenue for 2008 to be "modestly below" its previous forecast for 50 percent growth over 2007. It did not elaborate.
VMware, 86 percent-owned by storage equipment maker EMC Corp , is scheduled to report second-quarter results on July 22.
Its shares fell to an all-time low of $36.55 earlier in the session before recovering a little to $38.77, stil
VMware, Inc. provides virtualization solutions. Its virtualization platform products include Player that enables individuals to run virtual machines on their desktops; Fusion, a desktop virtualization product for users of Intel-based Apple Macintosh computers; Workstation for software developers and enterprise IT professionals; Server, which enables virtual partitioning of a server; ESX Server, an enterprise-class virtualization platform that runs directly on the hardware; Virtual SMP that enables a virtual machine to use four physical processors simultaneously; and VMFS, which allows multi...
Mware, Inc. provides virtualization solutions. Its virtualization platform products include Player that enables individuals to run virtual machines on their desktops; Fusion, a desktop virtualization product for users of Intel-based Apple Macintosh computers; Workstation for software developers and enterprise IT professionals; Server, which enables virtual partitioning of a server; ESX Server, an enterprise-class virtualization platform that runs directly on the hardware; Virtual SMP that enables a virtual machine to use four physical processors simultaneously; and VMFS, which allows multip...
VMware, Inc. provides virtualization solutions. Its virtualization platform products include Player that enables individuals to run virtual machines on their desktops; Fusion, a desktop virtualization product for users of Intel-based Apple Macintosh computers; Workstation for software developers and enterprise IT professionals; Server, which enables virtual partitioning of a server; ESX Server, an enterprise-class virtualization platform that runs directly on the hardware; Virtual SMP that enables a virtual machine to use four physical processors simultaneously; and VMFS, which allows multi...
VMW is down 13% today because of Microsoft's launch of a competing software... Remember, this is Microsoft. A company that stole a few lines of code back in 1982 and cornered the young market on PC operating systems. Microsoft haven't had a good product roll out since. Big wig suites on wall street hear Microsoft and panic, but I think we should know better.. I'm NOT selling my VMW holdings, if anything I see this as a buying opportunity... let me guess what will happen next: Bill gates will showcase the new software at CES and it will crash his OS... Microsoft will offer...
Reading through earnings releases from VMware, Inc. (VMW) it is easy to get excited about virtualization software and how the phenomenon is revolutionizing the way businesses manage their information systems. On top of the glitzy technological issues, it also doesn’t hurt to have sales growing astronomically, and a stock price that is more than double [...]
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