VMWare (NYSE: VMW, Stock Forum) went from an IPO price of under $50 a year and a half ago to $125. That happened in three months. The market then discovered that the virtualization software company's revenues were not going to double every year and the shares dropped to $20.
What Wall St. missed is that VMWare builds what is likely to be the single most important software available to cut IT costs over the next decade.
Yesterday, VMW reported a quarter in which sales rose 32% to $472 million. The company beat consensus EPS numbers. The stock then moved up 22% from where it had been trading, near its 52-week low.
To continue reading this story, please click here.