Just like Nvidia (NASDAQ:NVDA) last week [Nvidia - Ouch], VMWare (NYSE:VMW) shows us yet again that the current Wall Street thesis that you can hide in technology because it is safe is yet another brilliant strategy. Down a quarter of it's value yesterday on a warning. I know, I know - it's all due to Microsoft (NASDAQ:MSFT)... just like Nvidia was all due to ATI. If you take away those outliers technology is safe overall since there is no exposure to oil - yep, that's the ticket, right Nokia (NYSE:NOK)? (down 37% YTD) Somehow consumers and producers cutting back in everything = won't hurt technology. Nope. Sounds like a lot of good horse sense from this set of eyes.
- Shares of VMware Inc. plunged 26 percent in Tuesday morning trading, after the virtual software maker warned its fiscal 2008 revenue would fall short of prior estimates, and said it replaced President and Chief Executive Diane Greene with former Microsoft executive Paul Maritz, effective immediately.
- The company said fiscal 2008 revenue will fall "modestly" below prior guidance for 50 percent growth year-over year. In fiscal 2007, VMware reported sales of $1.33 billion.
- On average, analysts surveyed by Thomson Financial expect total revenue of $2 billion for the full year.