At the end of the day, a business is a business - whose goal is to make profit. It doesn't matter what it makes - software, hardware, medicine or guns. The things that matter are growth potential and profitability from that revenue growth. Otherwise you would end up with one model(yardstick) for each type of business - that's just absurd.
It's a safe bet that none of you have used VMW's most profitable product (hint: not the desktop virtual machines). They charged too much for sure and the alternatives (from Citrix, Microsoft, Oracle, etc.) are getting better than before.
There are so called "perception" factors. But Benjamin Graham put it best: " ... since in the short term, the stock market behaves like a voting machine, but in the long term it acts like a weighing machine". So "perception" makes the stock more volatile - that's all it does.
vmware's products keep getting better. they help companies to save money.
medicine companies have the longest cycles for their products. it is stupid to mention hardware companies, google, and software companies together; it is even more stupid to mention medicine companies with them.
those are dumb comments. obviously you have little clue about businesses when u talked about them. hardware companies can fall very quickly because their markets are easier to penetrate and life cycles are much shorter. vmware's products are way much better than opponents'.
Stock price has nothing to do with reality. All perception....supply and demand. This is why you can't apply mathamatical logic into the price of a company like VMW, or Apple.
Perception, Why is a toy maker like Apple worth more to us as humans than General Electric? Dumb, huh? If you were an alien and came to Earth and looked at the Stock Market, you would say that we put more emphasis on toys (Iphones, Ipads, Ipods) than aircraft engines, railroad engines, medical technology, power plants, etc...
100% of Fortune 100 companies use VMW, as well as thousands of others. licensing and maintenace fees are steady income. that is competitive advantage.
Intel, Cisco, and EMC are owners.
only 30% market has been penetrated.
virtualization saves money and energy, so expect more growth. lot of areas left to virtualize.
in the future, VMW will make Microsoft, Nintendo, Gamestop, and Rimm obsolete. Operating systems will lose importance, game systems will disappear and everythign will be done on the internet, cell phones will be virtualized so regular phone can be a work phone and data is separate.