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Cloud Computing Stock on the Rise

VMware's breakout from a 'V' bottom should run stock to $115

   

VMware (NYSE:VMW) — This subsidiary of EMC Corp. (NYSE:EMC) is an acknowledged leader in virtualization software and cloud infrastructure. The company’s innovative approach is illustrated by its recent offer to allow customers to “test drive” a cloud built on the VMware vCloud platform.

Following a 32% increase in revenues in 2011, analysts are looking for an increase of 22% in 2012. Earnings are expected to be around $2.72 in 2012 and $3.15 next year. Analysts’ mean target price for the stock is $122.

Technically VMW has been trading in a jagged 12-month rectangle with a high at $115. Thursday’s breakout from a “V” bottom through its 200-day moving average should run it to the high of the current pattern at $115.

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Article printed from InvestorPlace Media, http://investorplace.com/2012/08/cloud-computing-stock-on-the-rise/.

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