SAN FRANCISCO - Vmware's(VMW Quote) stock continued to bleed Wednesday, sinking below its initial IPO trading price for the first time ever.
Shares were down $5.47, or 17.1%, to $26.51, bringing VMware's two-day drop to 21%. The stock is trading at 22 times expected 2009 earnings, vs. its P/E ratio last month of 31.
VMware went public in August 2007 at $29, but within months catapulted to trade above $120. The stock has subsequently faded, as results began to disappoint investors, who started to fear increasing competition to the company's market share.
On Wednesday, Jefferies analyst Katherine Egbert cut her one-year price target to $30 from $40. The consensus target estimate of analysts stands at $36, according to Thomson Reuters. ...
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