It's just an oversold bounceback. Happens all the time. Don't worry. Be patient. It will be right back down again tomorrow. All support has been broken.
They are too stupid to read anything in the news feed, but somehow still capable of using a computer to enter buy orders for the stock.
Sentiment: Strong Sell
Which could take years....
I wonder if the investment banks involved in the deal are propping this up to avoid the embarrassment of having the stock tank to $30 in the first week of trading. Seems rather suspicious that this is still above $40.... What do you think?
Sentiment: Strong Sell
If celebrities (which generate most of twitter's "content") switch to other platforms, or their own platforms, as suggested in this article, twitter could lose 95% of its value.
FB and AMZN are commonly mentioned as examples of companies that are significantly overvalued, yet FB trades at 10X revenues and AMZN at 4X revenues while Twitter trades at an astronomical 50X revs! I wonder if there's ever been a company in history with this market cap that has been more overvalued? Twitter might just be a new record in human stupidity!
The recent 10% run up into earnings indicates the market was expecting a massive beat and raise from VMW. While the quarter was not terrible, look for heavy profit taking tomorrow...
The first rebound back above 70 just alleviated the oversold conditions. Now it is slowly sinking back through support. Soon 70 will be resistance....
It looks like it wants to break the 70 level but can't quite stay there yet. Something is still propping it up, but I don't know what...
It seems like 90% of investors think like this. I see it over and over again. They buy a bad company, then babble about market manipulation when it goes down. Could there be any other reason the stock is down today? Oh, how about this downgrade? http://finance.yahoo.com/news/vmware-downgraded-hold-buy-deutsche-131936124.html Or the fact that the overall market is tanking too? Nah, it must be manipulation! It's rigged!
If you give the stock a forward market multiple of 14 and take next year's "estimated" earnings of $3.76 X 14 = $52.64. Now we can debate whether or VMW actually deserves a market multiple considering all of their problems, but that's another debate.... In any case $50s seems like a reasonable level to get long if you really like the company. There's no point in buying way up here.
I wouldn't say they've got a "great business model" They have very serious competition from Microsoft and openstack. I would call the business model "greatly challenged." I think analysts and investors are FINALLY starting to wake up. That is why you are seeing these shares go down, especially as the company still continues to trade at a very high valuation.
I'd like to ask the shorts in this stock how low they think VM ware can get in the next 6 months. Does anyone see $50 as a possibility? If we start to see the impact from microsoft competition this quarter maybe we can get a nice drop. Clearly the stock is going to zero in the long run, but that could take 5 years or more. What are your price targets in the short term?
VMWare VMW was initiated with a hold rating at Stifel Nicolaus. 2013 will likely be a transition year for the company, Stifel Nicolaus said.
A transition to what? Death?
They're competing with freeware!!