VMWare (VMW) appears to be a worthwhile stock for several reasons. However, after doing homework, my current message is not necessarily to invest in it now. The shares are trading at higher multiples of earnings than they have in the past and are also near all time highs. The stock can keep going up, though.
The company is in computer software, being a cloud provider. It has several lines of business that are all growing rapidly. Two things that must be interconnected are most exciting immediately:
Again, I can’t say if the stock is about to keep going up and up or maybe should take a breather. It really seems to be an ‘all systems go’ type situation, with a business or two positioned for explosive future growth. If the stock declines for some reason, maybe concurrent with headlines about sanctions against Huawei or another Chinese corporation, I would probably take a chance with it.
I reserve the right to revise and edit this.
5/25/19
An interview with the firm’s CEO Patrick Gelsinger, ahead of its earnings report on Thursday the 30th, has a sanguine tone.The emphasis is on 5G.
The company is in computer software, being a cloud provider. It has several lines of business that are all growing rapidly. Two things that must be interconnected are most exciting immediately:
- Its Network Functions Virtualization (NFV) platform that has prospects for the implementation of 5G communications technologies; beginning in 2020. The firm claims that “NFV is the foundation to deliver 5G.” VMWare has relationships with AT&T, Ericsson, Vodafone, and T-Systems in place. Pertaining to AT&T, a VMWare product known as VeloCloud is being integrated with 5G capability.
- The NFV platform’s architecture also will support Internet of Things (IoT) services in the future. The company is continuing to develop its Pulse IoT center currently.
- A recent award for the “Best Mobile Security Solution.” (The company is also a Finalist for “Best Data Leakage Prevention (DLP) Solution”).
Again, I can’t say if the stock is about to keep going up and up or maybe should take a breather. It really seems to be an ‘all systems go’ type situation, with a business or two positioned for explosive future growth. If the stock declines for some reason, maybe concurrent with headlines about sanctions against Huawei or another Chinese corporation, I would probably take a chance with it.
I reserve the right to revise and edit this.
5/25/19
An interview with the firm’s CEO Patrick Gelsinger, ahead of its earnings report on Thursday the 30th, has a sanguine tone.The emphasis is on 5G.