NEW YORK (TheStreet) -- Shares of VMware Inc. (VMW) are lower by -3.50% to $97.25 on heavy volume in mid-afternoon trading on Tuesday, after the company announced it would stop providing long term guidance, MarketWatch reports.
The company, which provides virtualized cloud infrastructure solutions, made the announcement at the VMware analyst day during the VMworld conference in San Francisco.
The company will no longer offer long term guidance as it is focusing investors' attention on aggregate top and bottom line success and execution against stated objectives, said a UBS (UBS) analyst in a note to clients, MarketWatch added.
Additionally, VMware announced several new data initiatives including a collaborative effort with Google (GOOGL) to deliver high-performance virtual desktops and workstation-class graphics to Google Chromebooks.
Separately, TheStreet Ratings team rates VMWARE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VMWARE INC (VMW) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."