VMWare's Vaporous Valuation

A large percentage of investors call themselves GARP (that is, "growth at a reasonable price") investors, but there is a big difference between those who focus on the "-arp" and those who focus on the "guh". Fast-growing software company VMware (NYSE:VMW) highlights this dichotomy, as there is no question about the torrid growth here (and the potential for more), but quite a fertile field to argue about just how reasonable the price is right now.  


The Quarter that Was
Forget the "yeah ... but" quarters you have seen from other companies in this earnings cycle, VMware delivered pretty much anything a growth investor could want. Revenue jumped 48% from last year, as the company saw strong renewals in enterprise license agreements and balanced growth across both the license and service segments.

For the full piece:
http://stocks.investopedia.com/stock-analysis/2010/VMWares-Vaporous-Valuation-VMW-CTXS-MSFT-ORCL-RHT0722.aspx