I am not saying the company offers a bad product, all i am saying is that it will be affected the same way IBM, CSCO and other tech giants are affected. Budget cuts will not necessarily drive companies into more virtualization. The budgets will be more to keep current operations and systems aflot and not to adopt new technologies.
If you are talking strictly a short term trade, then this is a good position to open as earnings should be outstanding. So a big pop will no doubt occur. Anything under 80 till earnings would be favorable and a great ROI.
Budget cut could drive companys into more virtualization, also be sure Vmware will sell this year more enterprise agreements than ever but also will focus in the medium and small customers, just a little bit of patience and will see how virtualization (and vmware ahead) becomes a must for every company growing or recessing.
VMW is not recession proof at all. Should recession arrive, technology departments will be first to get their budgets cut.IBM was already affected by less orders from big companies. If it was not for international growth technology sector would be in trouble.
To be honest with you, I think the Visa IPO will come out too high much like NMX did after the success of ICE which I own since the IPO price. In fact, I think MA is still the better buy in the long-term just like ICE proved to be b/c Visa will have NO international exposer even after the IPO goes public...euro Visa isn't taking part in the IPO. So, if the US economic slows further it will be reflected in Visa earnings going further.