Virtualization company VMWare (VMW) fell almost 10% in today's trading, as Oracle (ORCL) disappointed investors. While VMWare has been posting strong results, especially in its last quarter estimate beat, the company has been in a downtrend as of late. The stock is down to $76.85, off its highs of $111 and change. While it is unknown if business at VMWare is still as strong as it was when the company reported, Oracle's miss definitely indicates that companies may be spending less on cloud-based software.
While VMWare is viewed as a riskier play compared to parent company EMC, however EMC was down 4% in the last trading session, albeit not as much as VMWare. EMC also has an Information Infrastructure division, and is much less volatile than VMWare, which is approximately 80% owned by the company.
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