kdo

Why Shorting VMware is a Mistake

My guess is that the shorts probably have some sort of pair trade with EMC, because EMC is relatively cheap and owns massive portions of VMWare. If that's not what they're doing, I agree, it's a dumb trade. While I won't say it'll lose money, they're in for a potentially disastrous lesson in what extreme revenue growth coupled with high operating leverage can do to change the earnings picture in a real hurry.