Comments on: VMware's sales disappoint, shares plunge

Virtualization specialist reports sharp rise in earnings, but sales fall short of what some analysts had been expecting. Shares fall more than 25 percent in after-hours trading.

[WJeansonne]

The Empire Strikes Back

I pity the dumb stockholders who didn't do their homework on VMware's competitors, especially Microsoft. It's only going to get worse.

[`WarpKat]

Not so fast...

I would say this is more or less customers
testing the waters to see who fits better into
their infrastructure. Just because VMWare sales
weren't what they had expected doesn't mean
Microsoft is doing any better with the
crippleware they're peddling.

With that said, VMWare is the commander of the
virtualization realm and will continue to be for
some time. Just because MS announces a product
doesn't mean it's a good product. They haven't
been around for as long in that game, so it's
not likely they'll do any real damage to them in
the near future. Further down the line, maybe,
but not today.

[Stating]

How Are The Underwriters' Stock Doing

The genius underwriters that brokered the VMware IPO, how is their stock doing? Let's see, Citi pleaded with the Arabs to buy another 5% of the company. Merrill wants a Chinese bailout. Yeah, I'm definitely going to take Citi or Merrill's advice on anything. I am so eager to help their execs buy even more Summer homes in the Hamptons.

Don't you guys get it yet -- these Wall Street guys are all con artists and swindlers. If they make you rich it is purely by accident.


"Underwriters of the offering included Citigroup (C.N: Quote, Profile, Research) JPMorgan Chase & Co. (JPM.N: Quote, Profile, Research), Lehman Brothers (LEH.N: Quote, Profile, Research), Credit Suisse, Merrill Lynch & Co. Inc. (MER.N: Quote, Profile, Research) and Deutsche Bank Securities."

[Astinsan]

Is it really all that surpising.

If they didn't meet the sales plan this is what happens...

It has nothing to do with scamming.

A lot of people panic when a stock falls.

I love VMWare. I have used their stuff for years. They just over estimated what they could get out of this year. There wasn't much talk about a recession when they set the bar. How were they to know.

There are many companies in the same boat. I know the retailer I work for didn't meet the plan for the last half of the year.

[gsekse]

hey, at least that french bank...

Hey, at least that French Bank isn't one of the underwriters! 8)

[Seaspray0]

What's your opinion?

Sales are up over last year. Profits per share are up over last year. Stock drops 25%? This doesn't make sense... unless it's part of an overall picture. i.e. another tech stock (apple) had a similar plunge but has done well over the last year. Global markets plunge over 10% last week. Does anyone else agree? Is this an isolated incident or are we looking at something much bigger?

[Penguinisto]

Apple is probably asking the same thing...

I mean, they kicked iron-clad arse last year in profits, growth,
and nearly every other factor.

Time to shoo away the gamblers and daytraders, and stick with
just pleasing the real investors, methinks.

/P

[GotAMD]

The Reason

The reason this happened is that Wall Street bases stocks' pricing on expectations. When a company fails to meet those expectations, or even lowers future expectations, it will be hit. That's especially true in this market. Look at Intel and it's record fourth quarter. The stock tanked.