TechCrash 2.0 update: VMWare

| January 30, 2008

All the way back in August, I raised concerns about another tech bubble building in light of the valuation of VMWare shooting up to nearly $20 billion on the day of its IPO. Of course, VMWare’s market cap continued to climb, sitting at a high of $30 billion as recently as a few days ago.

Well, with all the turmoil in the financial markets, VMWare’s shares have slumped a bit — like losing nearly $10 billion of that market cap in the past day or so, with a 30% drop in share prices. And that’s for predicting merely 50% annual growth, instead of 70-80%.

Actually, I see this as a good sign. I’d much rather see individual stock bubbles deflate a bit than go through again the relentless downware tech collapse of 2000-2002.

But go back and watch this again. ..bruce..

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Category: Economics, Information Technology, Main, Recession Watch

About the Author ()

Webster is Principal and Founder at Bruce F. Webster & Associates, as well as an Adjunct Professor of Computer Science at Brigham Young University. He works with organizations to help them with troubled or failed information technology (IT) projects. He has also worked in several dozen legal cases as a consultant and as a testifying expert, both in the United States and Japan. He can be reached at bwebster@bfwa.com, or you can follow him on Twitter as @bfwebster.

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