VMWare (VMW) was once dubbed “the next Google,” this company has seemingly failed to live up to the hype. At one time, revenue growth estimates exceeded 100%. This number has been consistently ratcheted down as competition has entered the market and enterprise technology spending has slowed. Once the crown jewel of parent company EMC, they have been hinting at spinning off the company completely.
Counterargument: Expectations got way ahead of reality, but at the current price I’m willing to give it a shot. VMWare own 75% of the market for an emerging tech service growing at 30% per year. While everyone is quick to fear Microsoft, how much luck have they had at entering a market and unseating dominant competitors lately? Look it up on “MSN/Live Internets Search” and then play it back on your Zune.
- 52 Week High Price: $125.25
- Recent Price: $35.31
- Decline from 52 Week High: 72%
Chart courtesy of StockCharts.com
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