Valovic on Virtualization

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"Sadly, VMware is No Google"

So reads the title of a recent blog post by Adam Lashinsky (who wrote a widely read profile of Diane Greene last year that appeared in Fortune.) The posting made a solid point about the performance of the stock: "With shares of virtualization software maker VMware (VMW) in free-fall, it's worth noting that for all the comparisons that have been made between the EMC-controlled (EMC) company and Google (GOOG), VMware's stock has now done something Google's never did: It trades well below it's opening price in 2007. As I noted when VMware went public not quite a year ago, the shares were offered at $29 but opened at $52. At one point VMware's shares soared above $125. Thursday they were down about 5% at $35 shortly before the close." However, I also found the posting interesting in that, read between the lines, it gives an insightful glimpse into the inflated investor expectations mentality that has raised the bar so high for VMware.

Posted by Tom Valovic on 08/04/2008 at 12:49 PM


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