VMware: Lost in the Clouds?
VMware Inc (VMW) shares tanked 21% today and hit a new 12 month low. VMW closed down $21 to just over $77 a share. The company was killed on its 'soft guidance' and traders are not going to pay high multiplies thus dumping the stock.
VMware's guidance didn't sound terrible, the company expects Q1 revenue in the range of $1.17 billion to $1.19 billion with 2013 total revenue at $5.23 billion to $5.35 billion. Analysts had expected $1.25 billion for the first quarter and $5.42 billion for the year. What got the attention today was VMware's plan to cut 900 jobs, which is 7 to 8% of its global workforce. It's a bit of a mystery as the company said their head count will still increase by about 1,000 this year despite the layoffs. Smoke and mirrors trick maybe?
Traders didn't seem to believe that the good times will continue at VMware. The short sellers ruled the tape on VMW today and the 13% short float did not work in longs favor. High frequency trading had to be involved as volume on VMW hit 27.8 million shares compared to the normal 1.8 million. Every financial news site and blog had an opinion on VMware today and the overall tone is negative. The analyst activity was also busy as all get out, here are the ratings today thanks to finviz.com:
Taking all those estimates into consideration just on the target price alone and it comes out to an average of 25% increase 12 months from now.
|Target Price||% Increase|
Bottom line: Mastery will wait until the dust settles on VMware. It's a roll of the dice if the falling knife continues or we get a dead cat bounce.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- The Perfect (Dollar) Storm – When Currencies Collide Part 2 | Financial Sense
- Potential Intraday Runners | iBankCoin.com
- US Industrial Production Follows China; Misses With Biggest Drop Since Jan | ZeroHedge
- Janet Yellen Trolls America's Poor: Tells Them It Is Important To Get Rich | ZeroHedge
- Is Crimea a Short-Term Gain for Putin, but Long-Term Loss for Russia? | Financial Sense
- A Sweet Setup | iBankCoin.com
- Yes, This is a Very Nice Market | iBankCoin.com
The most relevant financial news and articles from the Internets
- ISIS Is Having An Alarmingly Easy Time Recruiting Fighters In Turkey | Business Insider
- Palantir, the War on Terror's Secret Weapon | BusinessWeek
- The 100 Best Companies For Working Moms | Business Insider
- Minnesota Governor Calls For Vikings To Suspend Adrian Peterson... | Business Insider
- Branson On Scotland: 'We'll Still Party Together' | Business Insider
- Dalai Lama calls inter-faith meeting in India to... | Business Insider
- Homeless Man Says He Has One-Night Stands Multiple Times A Week In Order To Stay Off... | Business Insider