VMware Shares Got Crushed: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of VMware (NYS: VMW) fell 11% today, following the broader software industry down.
So what: Worry is spreading quickly after Oracle reported a disappointing quarter last night; VMware was just another of today's casualties. Investors are on edge about every nugget of bad news, so the entire industry took a nosedive today.
Now what: The news could be a canary in the coal mine for many software companies because Oracle has a beat on overall industry spending. A slowdown for them likely means a slowdown for everyone in the industry. I am definitely not buying during this dip and would wait to see how information trickles out from the industry to see if this is really bad news for VMware.
Interested in more info on VMware? Add it to your watchlist byclicking here.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.The Motley Fool owns shares of Oracle. Motley Fool newsletter services have recommended buying shares of VMware. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.