Momentum crazy investors are buying VMWare, Inc. (Nasdaq VMW
). The Google-holics anonymous club has apparently left their treatment center and piled into VMWare, Inc today. With Google biding its time after a somewhat tepid earnings report last time around, all those daytraders and dot com stock traders seem to be piling into VMWare. The stock is up $9 at $66. That's up 15% today alone and more than 27% since the first day of trading. The IPO price of VMWare
was $29 and they completed their exchange offer with EMC
just 1 week ago on August 14, 2007. The contrast between VMWare and EMC couldn't be more stark. EMC is barely up 3% today or $.70 up at around $19 dollars.
I'm watching VMWare and just scratching my head. Fear or greed? Blue pill or red pill? It's a bit surreal seeing the action because it feels just like what a stock would do when it IPOed in '99. Is it better to be the guy who buys at $66 and sells at $100 or the guy who stays in the sideline and watches the stock hover around $50-$70 while all these crazy daytraders get whipsawed?