Unlike other cloud games, VMW shares didn’t get a huge boost from the pandemic tailwind. Despite the rotation of investors from technology stocks, this sub-par name could move higher.
VMware (VMW) may have exceeded analysts’ estimates late last month, but the results had little impact on the share price. Since the publication of the quarterly results on February 25, the shares have traded sideways, as they had for almost all of last year.
Investors interested in buying VMW at current levels can benefit from the fact that the stock has not appreciated in value like many of its competitors.
Similar to Splunk (SPLK) the company’s conversion to a software-as-a-service (SaaS) -based business model makes the company appear to be growing more slowly than it actually is. As the transition continues, the company’s growth will accelerate, which will warrant a higher valuation.
While this bodes well for the future stock, stocks will likely continue to trade sideways in …