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Another New High for VMware

The stock has put up a two-day gain of 12.6%.

SAN FRANCISCO -- VMware (VMW) - Get Report sprinted to a new all-time closing high Wednesday, just one day after topping the $100 level for the first time.

Shares of the Palo Alto, Calif., virtualization software company, which went public Aug. 14, finished Wednesday at $107.04, ringing up another gain of $5.43, or 5.4%.

That gives the stock a two-session gain of 12.6%. The stock's initial public offering, a partial spinoff by

EMC

(EMC)

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, priced two months ago at $29.

VMware's runup now gives the stock a market cap of $40.9 billion, edging it past

Amazon.com

(AMZN) - Get Report

, which trades at 61 times 2008 earnings, half the comparable P/E ratio of VMware, at 116.

Ironically, VMware's market cap is also nearing that of EMC, which has a capitalization of $47.4 billion. Earlier Tuesday, Pacific Crest analyst Brent Bracelin suggested in a research note that the closing gap between the two stocks could elicit buying interest in EMC to unlock what he contends is the market's discounting of EMC's stake in VMware.