I know this is the talked about IPO since Google, but can this company do as well as Google did? I bought some shares, but only to go for the ride. What is everyone's take on this? Hot or cold?
I have been in tech for over 15 years. I use VMware products. They are the best and have potential to be installed on almost every server and PC out there (think Intel, Microsoft) with annual support and maintenance renewal revenues.They have a moat like the Pacific Ocean. No one is even close yet. They are trying but they are not there.I kicked myself for trying to be a value investor on companies like Cisco , Dell and Microsoft 15 years ago when I knew they had great potential, because I used their products and spent lots of money on them.VMware is a Rule Breaker. I don't know how to value it properly, I only know the potential is enormous, so I did like you did and I bought a small chunk for my portfolio.The ride should be very volatile and lots of fun.
I bought more than a few, well that is relative, but for my portfolio it is more than a few (670). I am swinging for the fence on this one. If it is volatile, that is ok for me, I don't see selling in the near or mid future.... If is a new Google.. Hey! I'm a happy camper.
It's hot now but I think that's because virtualization is a growing market and VMware was the only option for direct investment in that market. That changed a bit this morning as Citrix just bought XenSoure: http://www.citrix.com/English/NE/news/news.asp?newsID=680808&ntref=hp_article_headlines_USXenSource has been the strongest alternative to VMware (although probably more from the open-source side than the commerical) and now it has access to distribution channels and established commercial accounts.VMware's long-term win in the market isn't that clear to me. The price-point of the commercial product is sufficiently high that a lot a lot of potential customers opt to use the freewave versions (VMplayer VMserver) or other open source virtualization products -- Xen or Qemu, for example. I note that in my workplace we use VMware extensively but we haven't paid them a dime.
wish I knew morebot the chart wedge this am at 57..and been a huge wooooooooooosh upwhats the funnymentalisticals say this is worth???tr
How does this company have a moat? Why do you say it has a moat and what would prevent new customers from using Citrix or F5 products now that both have bought a competitor. This thing is valued at 20 billion while EMC is like 35 billion. EMC made a fortune off this company and I think it's priced ridiculously high. I thought it was going to trade at 8 billion but it doubled. Why would this company have a moat? I know they have the market to themselves at this point but new competitors are entering the space.
How does this company have a moat? Why do you say it has a moat and what would prevent new customers from using Citrix or F5 products now that both have bought a competitor. This thing is valued at 20 billion while EMC is like 35 billion. EMC made a fortune off this company and I think it's priced ridiculously high. I thought it was going to trade at 8 billion but it doubled. Why would this company have a moat? I know they have the market to themselves at this point but new competitors are entering the space.Moat #1 is the level of the technology. Currently, it is the best. Microsoft and Citrix are at least 2-3 years behind, and VMware keeps improving.Moat #2 is the installed server base. One you have VMware installed on a server, you are not likely to rip it out.No company keeps their moat(s) forever, especially in technology, but I will ride them until they lose it.I agree with you on the valuation, but I do not pay much attention to valuation on potential hypergrowth companies, at least until the growth prospects are more clear.The strategy I use is to buy half now and half later if it crashes. Sell when the technology is no longer dominant.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |