While Dell Technologies doesn’t own VMWare completely, it is the majority shareholder of the company with an 81% stake in it. It if wanted to, the tech company could choose to sell off its stake in the software company, which is what the rumors imply might happen.
It’s also possible that Dell Technologies could go the completely opposite route. Instead of selling its stake in VMWare, the company is reportedly considering buying up the remaining shares of VMW stock.
Investors will have to take this Dell Technologies news with a grain of salt. The information is only rumored at this point and both Dell Technologies and VMWare are refusing to comment on the matter. However, it won’t hurt to keep an eye on DELL and VMWare stocks for the near future, reports CNBC.
While the year has been rough on the stock market thanks to the novel coronavirus and an oil war, both Dell Technologies and VMWare have performed well. Both did see a drop in mid-March but have been steadily recovering since then. As it is now, DELL stock is only down 6.3% since the start of the year and VMW stock is down 4.1% year-to-date.
DELL stock was up 7.9% and VMW stock was up 2.6% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.