|Bid||160.88 x 800|
|Ask||160.94 x 1000|
|Day's Range||159.00 - 161.97|
|52 Week Range||128.69 - 206.80|
|Beta (5Y Monthly)||1.04|
|PE Ratio (TTM)||10.29|
|Earnings Date||Feb 26, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Dec 30, 2018|
|1y Target Est||181.12|
VMware to Announce Fourth Quarter and Fiscal Year 2020 Financial Results on Thursday, February 27, 2020
The software giant is laying off its chief technology officer for edge computing and the Internet of things, plus two vice presidents and two directors who focus on edge and IoT.
Shares of CrowdStrike Holdings Inc. are up nearly 4% in premarket trading Tuesday after D.A. Davidson analyst Andrew Nowinski upgraded the stock to buy from neutral and raised his price target to $75 from $58. "First, we believe CrowdStrike is significantly benefiting from Broadcom's acquisition of Symantec, as many resellers have noted an improvement in growth rates," Nowinski wrote. "Second, we are seeing little to no impact from VMware's acquisition of Carbon Black. Third, we are seeing increasing traction with CrowdStrike's other products, including their vulnerability management module." He expects that the company will be able to deliver better-than-expected annual recurring revenue over the next year on the back of these trends. He said that the potential for more market share gains coming from Symantec "is the single largest revenue growth driver for CrowdStrike in 2020." CrowdStrike shares have added 37% over the past three months, as the S&P 500 has increased 8.6%.
NetApp's (NTAP) fiscal third-quarter results are likely to reflect strength in hybrid multi-cloud solutions, cloud data services and private cloud offerings amid stiff competition.
Bernstein analyst Mark Moerdler raised his rating for VMware to Outperform from Market-Perform. He also increased his price target to $181 a share from $171.
(Bloomberg) -- In March, VMware Inc. Chief Executive Officer Pat Gelsinger took the stage at a premier cybersecurity conference to deliver a cutting message to attendees: The industry had failed its customers and many of the companies were akin to ambulance chasers.“We have 6,000 products, 5,000 companies, highly fragmented, (and) not operational,” Gelsinger recalled telling those at the RSA Conference in San Francisco. “We’re the fastest growing line item for IT and the number and scope of breaches has increased.”The reaction: “There were people who wanted to kill me,’’ he said. “There were people who considered me a prophet of the future.”Five months after Gelsinger’s speech, VMware entered the fray, buying cybersecurity company Carbon Black Inc. for $2.1 billion, and joining an estimated 5,600 companies that offer security hardware, software or services. VMware, majority owned by Dell Technologies Inc., and Box Inc. are among the software makers that have targeted the area as the next frontier for growth. Businesses are spending more to protect their information in an era when cyber-attacks have become more frequent and data is moving from corporate servers to huge public cloud-computing vendors.Companies spent $112.7 billion on information security and risk management in 2018, and are projected to increase that outlay almost 9% more per year through 2022, according to research firm Gartner Inc. Still, with the industry so diverse, and so many niche products available, it will be difficult for any new entrant to capture a big share of the business, said Erik Suppiger, an analyst at JMP Securities. “Security is a very specialized technology and it’s difficult to replicate the culture of security innovation at a company that’s not focused on security,” Suppiger said in an interview. “When you have other companies trying to expand beyond their core focus, I think a lot of times they are more successful if it’s adjacent to what they do. It’s when they move beyond a good complement that they get into trouble.”The top public cloud companies, Amazon.com Inc., Microsoft Inc. and Alphabet Inc.’s Google also have started to develop add-on security tools to protect clients’ data on their platforms, suggesting another new, powerful force in the industry.“We haven’t seen them dominating yet, but they are in a very good position,” Suppiger said of the three cloud titans.Despite the market chaos, Gelsinger sees an opportunity for VMware. It plans to integrate Carbon Black’s data-protection product with its existing software and sell them as a suite.“We’re going to redefine the category to say if you’re not a platform and you’re not doing management and security, you’re part of the problem, not part of the solution,” he said.VMware makes software that allows customers to combine multiple tasks on a single server, and is trying to shift to selling more programs that help companies run applications in the cloud and in their own data centers. For years, the 22-year-old company has sought new avenues to boost sales growth, including networking solutions and products that authenticate the identities of those accessing corporate devices and systems.Revenue growth of about 12% year over year for the last four quarters hasn’t matched business cloud applications companies such as Salesforce.com Inc. or Adobe Inc., which regularly post quarterly revenue gains of more than 20%.While no individual companies dominate the market the way former titans McAfee and Symantec once held sway, VMware’s Carbon Black competes with Crowdstrike Inc., a Wall Street favorite since it went public last June. Carbon Black makes software that helps companies detect malicious behavior on their systems. Gelsinger said he considered buying Crowdstrike and others, but dismissed the notion of spending one-third of his company’s $60 billion market capitalization on “one solution.”Instead, VMware is betting it can capture bigger deals by integrating Carbon Black’s tools and selling them through its existing, much-larger salesforce.Suppiger said VMware’s entrance into the market is unlikely to rattle rivals.“I don’t view them as a major threat to the vendor landscape in the endpoint space,” Suppiger said. “There’s a pretty strong case to be made that Crowdstrike is out-executing Carbon Black as part of VMware.”Other companies may emerge as targets for those looking to bolster their positions in the cybersecurity market. Dell is said to be exploring a sale of RSA Security, which it hopes could fetch at least $1 billion, Bloomberg News reported in November. CrowdStrike remains a coveted asset, as is Zscaler Inc., which provides web and mobile security, and analysts have pointed to Palo Alto Networks Inc., though its $24 billion market value makes it an expensive acquisition.Box CEO Aaron Levie, too, sees cybersecurity as a way to expand. His company’s sales growth dropped to less than 20% a quarter in the current fiscal year—far slower than many of its cloud peers.Last October, Box launched a security product, Shield, that’s meant to help companies reduce data leaks through additional controls. The introduction of the new product coincided with activist investor Starboard Value LP taking a stake in the Redwood City, California-based software maker, pushing the company to increase sales growth and make a profit.Box’s future will be determined, in part, on how well it can sell Shield. Levie said he came to believe that a security product would be a natural evolution for the company that sells file-sharing and collaboration tools.In “a world where companies are sharing and collaborating inside and outside of their organizations, you need an all-new security model to protect information that flows between companies,” he said.For all of VMware CEO Gelsinger’s complaints about how fractured the cybersecurity market is, Suppiger still sees the best solutions coming from smaller companies that concentrate on specific problems. But the market remains wide open.“Cloud security is still the wild, wild west where the competitive dynamics have yet to really play out,” Suppiger said.To contact the author of this story: Nico Grant in San Francisco at firstname.lastname@example.orgTo contact the editor responsible for this story: Andrew Pollack at email@example.com, Molly SchuetzFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The executive departures accompany a round of layoffs affecting employees in the Bay Area and other offices.
A federal jury has called for Palo Alto-based VMware to pay $236 million to a Canadian software company for infringing on two of its patents for virtualization technology, but VMware — a company worth more than 1,000 times as much as the plaintiff — plans to fight the ruling. Densify, a 21-year-old Ontario hybrid cloud company with 150 employees listed on LinkedIn, filed the patent infringement suit last year in the U.S. District Court for the District of Delaware. The company’s legal name is Cirba Inc. The suit culminated in a nine-day jury trial before Judge Leonard P. Stark, according to Reichman Jorgensen LLP, the Redwood City law firm that represented Densify.
The Palo Alto startup was valued at around $65 million after its most recent funding two years ago and had raised about $26.5 million.
VMware Inc. said late Tuesday it planned to acquire Nyansa Inc. for an undisclosed sum. VMware stock was up less than 0.1% in the extended session. Nyansa is a closely held Palo Alto, Calif.-based network analytics software company that has raised nearly $30 million in venture capital dollars, according to Crunchbase. "Nyansa is a proven solution that solves many of the shortcomings of today's vendor-specific solutions," Sanjay Uppal, a vice president and general manager at VMware, said in a statement. "Nyansa currently analyzes user network traffic from more than 20 million client devices across thousands of customer sites at companies including Tesla, Uber, Lululemon, Rooms To Go, GE Healthcare, SF International Airport, Stanford, Northeast Georgia Healthcare System and many others." VMware stock closed down 1.8% during the regular session Tuesday as the S&P 500 index fell 0.3%.
VMware, Inc. (VMW), today announced its intent to acquire Nyansa, Inc. (“knee-ans-sah”), a fast-growing innovator of AI-based network analytics. Nyansa will enable VMware to deliver an end-to-end network visibility, monitoring and remediation solution within VMware SD-WAN by VeloCloud that can proactively predict client problems, optimize application and network performance and better assure the behavior of critical IoT devices.
Many investors were looking at 2020 as being the start of something big for VMware (NYSE:VMW). After a year spent on acquisitions, the company appears ready to start making its transition to a hybrid cloud provider.Source: Sundry Photography / Shutterstock.com That would be welcome news to investors who are watching a stock that has dropped 25% from its 52-week high set in May 2019. But so far, 2020 has brought a lack of clear direction. Instead of participating in the market melt up like other tech stocks, VMW shares are down about 5% since the start of the year. And much to the chagrin of some traders, the stock is struggling to push above a support level at $150. Acquire or DieAs the cloud revolution was taking place, VMware quickly realized that its position as an old-guard enterprise company was under attack. Companies are moving away from traditional virtualization and looking to containers to hold their apps, configurations and settings.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis transition played out in the price of VMW stock. While companies like Microsoft (NASDAQ:MSFT) were having a banner year, VMW stock had a gain of just over 10%. Smartly, VMware went on a buying spree. * 10 Cheap Stocks to Buy Under $10 One of the key phrases in the hybrid cloud model being adopted by VMware is "open source technology." IBM (NYSE:IBM) became the undisputed leader in open source container applications with its expensive $34 billion purchase of Red Hat in 2019. This gave IBM access to Red Hat's OpenShift Kubernetes platform. VMware's response is a $2.7 billion purchase of Pivotal Software. This is a move that VMware CEO Patrick Gelsinger said gives the company better assets for far less cost.The acquisition of Pivotal is at the core of VMware's own Kubernetes strategy called VMware Tanzu. This portfolio of products and services will give customers the option to build and deploy applications on Kubernetes using different development platforms.But that wasn't the extent of VMware's acquisitions. The company also acquired Bitnami with its packaged application catalog and Heptio for deep Kubernetes expertise. All this in addition to VMware's $2.1 purchase of Carbon Black. VMware Has to DeliverTo be fair, VMware had to make these acquisitions. And compared to IBM's purchase of Red Hat, it may turn out to be a savvy and fiscally sound investment.But now, VMware has to deliver. To that end, VMware's goal is to get its existing 600,000 vSphere customer base to adopt container technology in addition to VMware's vSphere virtualization platform. The initiative, called Project Pacific, unites vSphere with Kubernetes. Analysts and Investment Firms Believe in the Business ModelOf the 24 analysts that have given a rating on VMware, 15 have given a buy rating while eight others gave it a hold. The global investment firm Oppenheimer recently reiterated its "outperform" rating on VMware and maintained its price target of $200. "We see a compelling risk/reward scenario as we don't believe recent strategic initiatives and model evolution has been factored into shares," said Oppenheimer in a note to investors.Analysts are projecting an earnings per share for 2020 and 2021 that suggests modest, but certainly not spectacular, profitability growth. Some of that may be that analysts are not yet factoring in the potential growth from the Pivotal acquisition. It's Too Early to Tell What 2020 Holds for VMW StockAlthough VMW stock is off to a rough start, it may represent a buying opportunity. My InvestorPlace colleague, Vince Martin, made a case that a price just below $150 might be an attractive buying point for VMware. Martin points out the company's large free cash flow as a benefit regardless of how successfully it can make the pivot in its cloud strategy.However, that alone will not be enough to excite investors. For that to happen, the company will have to show growth. And that is something that won't be clear for a couple of quarters. Which means the stock will probably be stuck in neutral. And as Will Healy wrote, VMware is majority owned by Dell. Now that Dell shares are trading again, the company may decide to buy VMware outright or spin off the company.Risk-tolerant investors may see more reasons to jump in. But right now, I see better, alternative opportunities in this space.As of this writing, Chris Markoch did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * 5 Retail Stocks Placer.ai Thinks Can Win Big in 2020 * 6 Cheap Stocks to Buy Under $7 The post VMware Stock Needs a Successful Pivot in 2020 appeared first on InvestorPlace.
FEATURE Heading into the coming December quarter earnings season, Piper Sandler analyst James Fish surveyed 35 “channel partners” on the state of the enterprise technology market. In a research note Wednesday, he writes that his biggest takeaway from the survey is that the picture looks better for software players than for hardware vendors.
VMware, Inc. (VMW) today announced that registration is open for the fifth annual Women Transforming Technology (WT2) Conference. Featuring inspiring speakers who overcame adversity in male-dominated industries, the fifth annual WT2 Conference has a theme of “We Rise” and will continue to cultivate a supportive environment for women, underrepresented minorities and allies in the technology industry.
Moody's Investors Service, ("Moody's") affirmed the B2 Corporate Family Rating ("CFR") of Presidio Holdings Inc. (New) ("Presidio ") and assigned a B1 rating to the company's proposed senior secured notes and Caa1 to the proposed senior unsecured notes. Proceeds from the new notes will be used to refinance acquisition bridge financing which, along with $855 million in contributed and rolled over equity, funded the roughly $2.2 billion acquisition of Presidio by BC Partners Advisors L.P. ("BC Partners") that closed on December 19, 2019. Earlier this week, Moody's assigned ratings to Presidio's new credit facilities which will also be used to refinance outstanding acquisition bridge debt.
This week at the National Retail Federation’s (NRF) annual show, VMware, Inc. (VMW), a leading innovator in enterprise software, showcased how several customers – including Chemist Warehouse, Chow Sang Sang, Migros and OFS – are partnering with the company to build a digital foundation for modern retail experiences. VMware Retail Solutions evolve legacy retail infrastructure into modern digital foundations with mobile workflows that can significantly increase customer satisfaction and workforce productivity.
VMware (NYSE:VMW), the jewel in the crown at Dell Technologies (NYSE:DELL), is one of the cheapest tech stocks you can buy right now, selling at under 10 times last year's earnings. 2020 will be a pivotal one for VMW stock. It has closed on its $2.7 billion purchase of Pivotal Software. It can now offer what it calls a complete cloud solution against International Business Machines' (NYSE:IBM) Red Hat unit.Source: Sundry Photography / Shutterstock.com Both companies are active in the market for "hybrid cloud," where corporate data centers run the same software, and interoperate with, the public clouds of Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOG,NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN).VMware has had to transform itself -- and its offerings -- to reach this point, going beyond the data centers where its vSphere virtualization software had dominated. It now has relationships with all the large public clouds, and 4,300 regional providers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks That Are Screaming Buys Right Now However, growth could really jump once customers figure out what a hybrid cloud is for, and act on that knowledge. Move to the EdgeThe 2010s were about the economics of cloud.Virtual machines, distributed computing and open-source software combined into a new, low-cost and hosted paradigm for corporate computing. VMware dominated the virtualization space. It now aims to expand the reach of its vSphere into the Kubernetes container space, which lets companies put existing software into cloud formation.This alone could spark a lot of growth. Cloud software, sold as a service, still represents just one-quarter of the enterprise software market. Analysts are now pounding the table for VMW stock, calling it a "hybrid monster." They point to parent Dell's lead in "hyperconverged storage".But, clouds are highly centralized. Hybrid cloud takes off when cloud technologies reach the network edge. It's this market that VMware is now targeting, seeking use cases in automated factories, artificial intelligence and virtual reality. To work seamlessly, these applications need to have fast cloud resources readily available, either on-premise or nearby. (Development of Pivotal was originally co-funded for this "machine Internet" by General Electric (NYSE:GE)).VMware spent 2019 preparing for this moment, investing heavily in Indian programmers to make vSphere container-friendly, in what it called Project Pacific. Gartner (NYSE:IT) predicts that 75% of companies will be running containers by 2022 so this was an essential strategic move. Will Dell Share?VMware is already an earnings monster.As our Vince Martin notes, VMware net income rose 21% last year, and 18% the year before. Yet, even if you take out the extraordinary gains from restructuring, the stock trades at just 21 times estimated 2021 earnings.Some investors question whether VMware can execute on its pivot from vSphere, which is usually sold in corporate data centers, to pure cloud. The recent market pivot from a focus on growth to value is a second reason the stock has lagged.However, despite delivering $1.8 billion to its net income line over the last three quarters, VMware has no regular dividend. That's because Dell owns 82% of VMware. Only 18% of VMware stock trades. Until its acquisition of VMware was complete, Dell was also losing money. Yet, it paid out a special VMware dividend of $11 billion on completion of the deal to take itself public. Most of that went to Michael Dell, Dell shareholders and Silver Lake, his hedge fund partners. The Bottom Line on VMW StockVMW stock is tough to value correctly because VMware is not an independent company. It is a unit of Dell and has been run with Dell's interests in mind.The year that starts in February is a "return to normalcy," VMware's relaunch as a cloud software company. Potentially, VMware stock is one of the great investments of the coming decade.Assuming, that is, its owners share the wealth.Dana Blankenhorn is a financial and technology journalist. His latest book is Technology's Big Bang: Yesterday, Today and Tomorrow with Moore's Law, essays on technology available at the Amazon Kindle store. Write him at firstname.lastname@example.org or follow him on Twitter at @danablankenhorn. As of this writing he owned shares in AMZN and MSFT. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks That Are Screaming Buys Right Now * 7 Industrial Stocks to Buy for a Strong New Year * 7 Investing Resolutions to Follow in 2020 The post VMware Stock Could Be a Great Investment for This Decade appeared first on InvestorPlace.
Moody's Investors Service ("Moody's") assigned a B2 Corporate Family Rating ("CFR") and a B2-PD Probability of Default Rating ("PDR") to Presidio Holdings Inc. (New) ("Presidio "). Proceeds from the new term loan will be used to partially refinance acquisition bridge financing which, along with $855 million in contributed and rolled over equity, funded the roughly $2.2 billion acquisition of Presidio by BC Partners Advisors L.P. ("BC Partners") that closed on December 19, 2019. Moody's expects additional new secured and unsecured debt facilities will be raised in the near term to completely repay acquisition bridge financing.
VMware (VMW) completes the acquisition of Pivotal Software in a bid to expand its enterprise-grade Kubernetes-based offerings for modern applications.