138.69 0.00 (0.00%)
After hours: 4:30PM EDT
|Bid||0.00 x 900|
|Ask||0.00 x 800|
|Day's Range||136.96 - 141.37|
|52 Week Range||85.45 - 165.00|
|PE Ratio (TTM)||100.50|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Shares of Dell Technologies Class V, the tracking stock for VMware, rallied for the second straight session on news that activist investor Carl Icahn has bought shares and optimism that a deal can be struck on favorable terms with the privately held Dell. The shares of the Dell tracker (DVMT) gained $1.89, to $80.70, on Monday after rising $4.50, or 6%, on Friday. The gain Friday came after Dell disclosed in a filing that it was considering a combination of Dell and the tracking stock as one of several corporate actions now being weighed by the company, which is controlled by Michael Dell and Silver Lake Partners.
Carl Icahn reveals the size of his position in VMware on CNBC's "Halftime Report" Monday.
Here are some things going on today in the world of tech: Shares of Snap (SNAP) are up 23 cents, or 2%, at $10.82, after Michael Nathanson with the boutique MoffettNathanson research house raised his rating on the shares this morning to Neutral from Sell. Nathanson concluded “several factors could potentially improve Snap’s situation throughout the year, including the redesign of the app redesign, completion of the shift to a programmatic advertising model, launch of the new Android app, and a leaner organizational structure." Nathanson thinks it’s time to unwind the short thesis given what could be an improving story for the stock. After cutting his estimates for this year’s revenue by 40%, to $1.17 billion, he finds the stock is “still crazy expensive at 12 times 2018 revenue,” but that as the company “reverses” its “ill-conceived redesign, user growth will improve which could help the narrative." Shares of memory-chip technology firm Micron Technology (MU) are up $1.96, or almost 4%, at $55.35, after the company this morning hiked its quarterly outlook for revenue and profit well above what it predicted back on March 22.
Dell is talking with the holders of its DVMT tracking stock to gauge their opinion on if they want a full merger between VMware and Dell. Tracker stock holders currently own shares that track the performance of VMware but not the rest of Dell's business. A deal with VMware could theoretically be done in stages, with step one eliminating the tracker and step two merging Dell and VMware.
According to NetApp (NTAP), the data-driven digital transformation seen across industry verticals has accelerated business outcomes. This has resulted in an increase in profitability and contributed to top line revenue growth.
Dell Technologies, the private company controlled by Michael Dell, is considering a combination with Dell Technologies class V, the tracking stock for VMware, based on a filing late Thursday. Such a combination, which would require the approval of two independent Dell directors and a majority of the tracker holders, could be bullish for the tracker if the terms are favorable. Tracker investors, however, may balk at a deal that gives them a stake in the highly leveraged Dell.
Hewlett Packard Enterprise (HPE) stock has returned 18% in the last 12 months. The stock has remained flat in the last month and the last five trading days. HPE stock rose 60% in 2016 and 8.5% in 2017. Year-to-date, it has risen ~21%. Peers IBM (IBM), VMware (VMW), NetApp (NTAP), and Microsoft (MSFT) have returned -5%, 49%, 70%, and 42%, respectively, in the last 12 months.
As CEO Michael Dell weighs whether to combine his privately held Dell Technologies with VMware, a software company that is 82% owned by Dell, some holders of the Dell tracking stock for VMware are sketching out a merger scenario that could be beneficial for all three of the major stakeholders. The idea is to create sufficient value in a combined company that would please Michael Dell and Silver Lake Partners, the public holders of VMware, and the Dell tracker holders. A deal would require that a value be placed on the private Dell, a tricky proposition given its high debt load of $48.7 billion and disappointing financial results since it was created from the merger of Dell and storage maker EMC in September 2016.
The Seattle software giant has reached a deal with the federal government’s intelligence community to use its cloud platform and other products.
Hewlett Packard Enterprise has announced its intention to acquire Plexxi, a small software-defined networking company, for an undisclosed amount. Plexxi provides flexible software-defined networking fabric capabilities for HCI and cloud applications. HPE, in announcing the acquisition, specifically called out the benefit that Plexxi’s capabilities in software-defined and flexible networking will bring to HPE's Simplivity and Synergy solutions. While there will be an immediate benefit to those product lines for HPE, this acquisition is far more strategic in nature. Converged and composable infrastructure are evolving at a rapid rate. Partnerships only work up to a point. The technology providers who have the right balance of capabilities in their IP portfolios will be the ones best suited to evolve with the needs of their customers.
The new fund will reportedly be separate from the San Jose-based networking giant's existing fund, which invests in later stage companies from Cisco's cash reserves.
Online education company PluralSight Inc on Tuesday raised the anticipated price range for its initial public offering by $2, valuing the company at nearly $2 billion at the higher end. The public offering was well oversubscribed, a source familiar with the matter told Reuters on Tuesday. The IPO is expected to be priced on Wednesday evening and the stock begins trading on Thursday.
Uber's Chief Executive Officer Dara Khosrowshahi is under pressure from the board and investors to find a new finance chief ahead of its IPO planned for next year, the WSJ reported. The CFO position at the company has been vacant since 2015. "We are not commenting on the rumour and speculation, other than to say that Zane Rowe remains VMware’s CFO," a spokesman for VMware said.
Uber's Chief Executive Officer Dara Khosrowshahi is under pressure from the board and investors to find a new finance chief ahead of its IPO planned for next year, the WSJ reported. The CFO position at the company has been vacant since 2015. "We are not commenting on the rumor and speculation, other than to say that Zane Rowe remains VMware’s CFO," a spokesman for VMware said.
T. Rowe Price Group (TROW) cut its overall stake in VMware (VMW) to 7.0% as of April 30 from 12% at the end of 2017, according to a regulatory filing made today. T. Rowe Price Associates, a unit of T. Rowe Price Group, now owns 7.4 million class-A shares of VMware, a cloud-infrastructure firm, down from 12.4 million class A shares. Privately held Dell Technologies owns 300 million class-B shares of VMware, which don't publicly trade and are convertible into class-A shares.
Additionally, this was an improvement in sentiment as investors who seek to profit from falling equity prices reduced their short positions on January 31. Index (PMI) data, output in the Technology sector is rising.
Last week I attended the first (of its name) Dell Technologies World — the annual conference previously known as EMC World and then Dell EMC World. The name change reflects Dell EMC’s focus on delivering “better together” customer solutions across the entire Dell Technologies portfolio of companies — particularly VMware and Pivotal. The change is also appropriate considering the evolving perspectives of Dell EMC’s enterprise infrastructure customers. The Dell Technologies portfolio of companies.
Some signs of more aggressive buying would help the technical picture but in the meantime raise sell-stop protection to a close below $125." I also added that "A tentative longer-term price target of $171.78 is indicated (from the Point and Figure chart). Looking at this first chart of VMW, below, we can see that prices continued sharply higher into late January missing our $171 price target but then reacting lower to break our stop loss point but finally stopping at the rising 200-day moving average line around $109. The volume of trading was very heavy at the end of March as prices moved sharply but notice the overall movement of the On-Balance-Volume (OBV) line -- the OBV line only made a relatively small decline into early February and has firmed again.
Cisco Systems (CSCO) continues to pare down its stake in VMware (VMW). Cisco disclosed late Wednesday in a regulatory filing that it sold 605,000 shares of VMware, a cloud-infrastructure firm, in the first quarter. VMware stock didn't see much net change in the quarter, slipping 3.2%.
As I wrote yesterday, this week I am attending Dell Technologies World 2018 in Las Vegas to get a look the conglomerate’s overall vision, and to see what new products and solutions it has in store for its customers and partners in the coming year. Day 1 of the event was mostly a stage-setter for Day 2, but we got to learn a lot about Dell’s interconnected partner ecosystem (see my Day 1 write-up here if interested). Last year at Dell EMC World, I had commented that I would have liked to have seen more from the company talking about AI and ML given how much discussion the public cloud providers and core ML IP companies were having. Dell is a company who actually needs to explain this deep tech to a real customer- it's not hypothetical.
Is Microsoft Stock Poised for More Success This Year? Earlier, we discussed the R&D (research and development) spending of technology companies in 2017. Amazon (AMZN) topped the list, and Microsoft (MSFT) came in at a distant fourth place.
Zacks.com highlights: VMware, PetMed Express, Merit Medical Systems, Dollar General and inTEST