VMware Goes Beyond Virtualization for Growth
Independence from Dell is a good thing for this underappreciated tech firm.
We believe VMware (VMW) offers an attractive investment opportunity as one of our top technology ideas. Dell Technologies’ (DELL) investment in VMware has been a well-known overhang, but with an anticipated spin-off toward the end of 2021, we believe investors can now rest easier with the prospect of no more pillaging of the virtualization king. In our view, and to the benefit of long-term investors, the market is overlooking VMware’s potential as a stand-alone entity with various growth catalysts that may not be apparent. Our narrow economic moat rating reinforces our belief that VMware possesses sustainable competitive advantages as the IT landscape becomes increasingly cloud-centric.
Mark Cash does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.