VMware Shares Drop Below IPO Price

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What a difference a year makes. The VMworld 2007 show generated excitement about the future of virtualization, prompting investors to bid up the price of the newly-public VMware (VMW). By November 2007, the company’s stock was trading at $124 a share.

Today marked the first day that VMware shares have fallen below their IPO price of $29. This afternoon VMW is down $5.00 at $26.98 a share, a one-day drop of 16 percent. It’s clearly not alone, as the current turmoil on Wall Street is battering many companies. It’s a sobering reminder that the technologies showcased at VMworld 2008 will be marketed and deployed in a tough market in which long-held assumptions can change overnight.

About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.

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  1. Given that ALL share prices are down, i don't really see the significance of this article. to flag up one company in bear market seems pre-emptive to say the least. Still it makes a news story in an other wise uneventful day....