Stock of the Day

November 14, 2019

VMware (VMW)

$142.48
$0.00 (0.0%)
Market Cap: $61.52B

About VMware

VMware, Inc. provides software solutions in the areas of modern applications, cloud management and infrastructure, networking, security, and workspaces in the United States and internationally. It offers VMware multi-cloud solutions, including VMware vSphere, a data center infrastructure that provides the fundamental compute layer; and vSAN and VxRail, which offers holistic data storage and protection options to applications running on vSphere; as well as VMware Cloud Foundation, a cloud platform that combines its vSphere, vSAN, and NSX with VMware Aria Cloud Management into an integrated stack that delivers ready cloud infrastructure for private and public clouds. The company also provides networking solutions, such as VMware NSX, NSX Distributed and Gateway Firewalls, NSX Network Detection and Response Engine, NSX Advanced Load Balancer, Tanzu Service Mesh, HCX, and VMware SASE; security solutions consisting of VMware Carbon Black Endpoint, Workload, and Container; and anywhere workspace solutions comprising Workspace ONE Unified Endpoint Management, Access, Intelligent Hub, Horizon, Mobile Threat Defence, and Digital Employee Experience Management. In addition, it offers application modernization solutions, such as Tanzu Application and Operations Platform, Tanzu Application Service, Tanzu Data Suite, and Tanzu Labs; and cloud management solutions, including VMware Aria Cloud Management, VMware Aria Suite, VMware Aria Universal Suite, and vCloud Suite. The company sells its products through distributors, resellers, system vendors, systems integrators, and contractors. VMware, Inc. has a strategic alliance with Amazon Web Services to build and deliver an integrated hybrid solution. VMware, Inc. was incorporated in 1998 and is headquartered in Palo Alto, California.

VMware Bull Case

Here are some ways that investors could benefit from investing in VMware, Inc.:

  • VMware, Inc. has established a strong position in the cloud management and infrastructure market, offering integrated solutions that cater to both private and public cloud environments, which is increasingly important as businesses transition to hybrid cloud strategies.
  • The company has a strategic alliance with Amazon Web Services, enhancing its credibility and reach in the cloud services market, potentially leading to increased revenue and market share.
  • Recent advancements in VMware's product offerings, such as the latest versions of VMware Cloud Foundation and VMware Aria Cloud Management, position the company well to meet the growing demand for modern application and cloud management solutions.
  • The current stock price is around $120, reflecting a stable investment opportunity in a company that continues to innovate and expand its product portfolio.
  • VMware, Inc. has a diverse range of solutions, including security and networking products, which can provide multiple revenue streams and reduce dependency on any single product line.

VMware Bear Case

Investors should be bearish about investing in VMware, Inc. for these reasons:

  • Despite its strong market position, VMware, Inc. faces intense competition from other cloud service providers, which could impact its market share and pricing power.
  • The company’s reliance on partnerships, such as with Amazon Web Services, may pose risks if these relationships change or if competitors form similar alliances.
  • VMware's stock has shown volatility, with fluctuations that could deter risk-averse investors looking for stable returns.
  • As the technology landscape evolves rapidly, there is a risk that VMware, Inc. may not keep pace with emerging trends or customer needs, potentially affecting its growth trajectory.
  • Investors should consider the potential for economic downturns, which could lead to reduced IT spending by businesses, impacting VMware's revenue growth.
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