Let me update the old thread
The earnings for the last 4 quarters are:
0.24+ 0.31 +0.32 +0.34 = 1.21/share
Current PE: (72.4-6.4 cash minus debts)/1.21 = 54.5
This stock is growing at 48%.
Next year this time, if the stock price is unchanged, earns from 0.34*4 = 1.4 to 1.21*1.48 = 1.8. Take their average 1.6, recalculate the P/E,
(72.4-6.4-1.6)/1.6 = 40
Barron's stupid article said that the growth rate is only 20% (actually 48%), the server space is nearly totally completed (when it is only about 20% virtualized), competitors' products are much cheaper (untrue after VMware cut prices by half) and have the same usable functionalities (wrong, VMware has more usable functionalities for lower ends now). It also mentioned Amazon alike which is in a different area of computing (VMware is about backbone technology)...
Too much nonsense in that article, just like a couple of others about VMware out in the past.
Yes. In the desktop area, Citrix and Microsoft are alliances. But technology wise, they are still well behind. VMware just cut its desktop fee by half, and also passed put into desktop products some advanced feature which had been available only to servers.