VMware is taking a hammering on the stock market after posting 150% increase in fourth quarter profit and an 80% jump in sales to $412 million. Right nw the stock is down over 30%. Why the hammering? Well, analysts were expecting sales to rise to $417 million.
I know that there are a few things stacked against VMware. It's not open source. While VMware Player is free, it's nowhere near as good as what you can find for free elsewhere. Microsoft just bought desktop virtualization company Calista Technologies. Citrix just bought XenSource ...
But ... VMware Workstation, ACE and the enterprise products that the company have on offer are all good products. Very good. In fact, short of Parallels on the Mac, VMware makes the best products that I've tried. And customers must realize how good a product it is, because it's hard to increase sales by 80% if the product isn't good.
This is another example of investors hammering a company hard for tiny shortcomings.