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
- Dell Buys EMC In Record $67BN Deal: Creates "World's Largest Private Integrated Tech Company" | ZeroHedge
- Backwards Capitalism: Unprofitable Companies Outperforming For Last 15 Years | ZeroHedge
- Putin Calls US, Allies "Oatmeal Heads" On Syria | ZeroHedge
- ISIS Spreads to Afghanistan and Libya | ZeroHedge
- How To Shortcut The 10,000 Hour Rule and Make Your Contribution to Life | Altucher Confidential
- Futures Slump After China Imports Plunge, German Sentiment Crashes, UK Enters Deflation | ZeroHedge
- Chinese Regulator Proposes Ban On High-Frequency Trading | ZeroHedge
The most relevant financial news and articles from the Internets
- Scientists asked 5,500 Americans to reveal their 'relationship dealbreakers... | Business Insider
- Meet the bankers making the $109 billion beer deal of the decade happen | Business Insider
- All Black 'day of vengeance' awaits... | Business Insider
- America's student debt nightmare actually started in the 1980s | Business Insider
- Nobel Economics Prize to wrap up 2015 awards season | Business Insider
- Police: Off-duty Memphis officer fatally shot | Business Insider
- Iran says verdict issued on Washington Post reporter | Business Insider