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
, priced two months ago at $29.
VMware's runup now gives the stock a market cap of $40.9 billion, edging it past
, 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.