Do Not Buy VMWare

From Zachstocks:

Though VMWare (VMW) is a profitable, growing company, shares still appear overvalued. The company recently reported earnings of $.25/share during the most recent quarter, which was impressive considering current economic conditions. However, management predicted that revenue over the next quarter(s) will be about flat compared to last year. At the same time, margins are under pressure, meaning that VMW shares will probably continue to be under pressure.

VMWare provides many different corporate IT solutions (cloud computing, virtualization, etc.) but also seems to be hoping to lure in comsomuers with other offerings: I have also seen ads on Facebook for VMWare software that allows Windows and Apple apps to run side-by-side on a Mac.

VMWare's solutions will be in demand as they are cost-effective solutions for businesses, but as the revenue and profit growth stagnates, shares will too.

Read the full article "VMWare Cloud Computing Casts a Shadow" at Zachstocks.