We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
VMware to Acquire Venture Cap Backed CloudHealth Technology
Read MoreHide Full Article
VMware recently announced that it has signed a definitive agreement to acquire CloudHealth Technologies, a provider of a platform for multi-cloud operations. Notably, the latter has received funding from eminent venture capital firms like Kleiner Perkins, Meritech, Sapphire Ventures, Scale Venture Partners, .406 Ventures and Sigma Prime Ventures. The deal amount as reported by Reuters is $500 million.
CloudHealth has operations across platforms like Microsoft’s (MSFT - Free Report) Azure, Amazon (AMZN - Free Report) AWS as well as Alphabet’s (GOOGL - Free Report) Google Cloud and has a huge base of more than 3000 global customers. The platform enables customers to optimize cost related to cloud usage, performance and security for “native public cloud” infrastructure.
The addition of solutions offered by CloudHealth Technologies is expected to enhance VMware’s capabilities to address multi-cloud environment related problems. This, in turn, is expected to boost the company’s share price momentum going ahead.
Notably, the stock has gained 43% over the past year, outperforming the 37% rally of the industry it belongs to.
How is VMware Poised?
VMware has been gaining from robust performance of NSX and vSAN product lines. Notably, nine out of the top 10 enterprise agreements in the company’s second-quarter of fiscal 2019 included NSX. VMware stated that 82 companies of the Fortune 100 have adopted NSX.
VMware is well poised to benefit from the increasing adoption of cloud-based solutions. The company has been consistently taking initiatives to diversify its product portfolio to include most of the IT infrastructure. Acquisitions of Desktone and Airwatch have significantly strengthened its position in this regard.
VMware also reported impressive second-quarter fiscal 2019 results. Both earnings and revenues increased on a year-over-year basis.
However, VMware’s margins are expected to be dampened by heavy spending. Intensifying competition is also a concern. The stiff competitive environment hurts VMware’s pricing power, which impacts profitability. Additionally, longer sales cycles remain a headwind for this Zacks Rank #4 (Sell) stock.
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
VMware to Acquire Venture Cap Backed CloudHealth Technology
VMware recently announced that it has signed a definitive agreement to acquire CloudHealth Technologies, a provider of a platform for multi-cloud operations. Notably, the latter has received funding from eminent venture capital firms like Kleiner Perkins, Meritech, Sapphire Ventures, Scale Venture Partners, .406 Ventures and Sigma Prime Ventures. The deal amount as reported by Reuters is $500 million.
CloudHealth has operations across platforms like Microsoft’s (MSFT - Free Report) Azure, Amazon (AMZN - Free Report) AWS as well as Alphabet’s (GOOGL - Free Report) Google Cloud and has a huge base of more than 3000 global customers. The platform enables customers to optimize cost related to cloud usage, performance and security for “native public cloud” infrastructure.
The addition of solutions offered by CloudHealth Technologies is expected to enhance VMware’s capabilities to address multi-cloud environment related problems. This, in turn, is expected to boost the company’s share price momentum going ahead.
Notably, the stock has gained 43% over the past year, outperforming the 37% rally of the industry it belongs to.
How is VMware Poised?
VMware has been gaining from robust performance of NSX and vSAN product lines. Notably, nine out of the top 10 enterprise agreements in the company’s second-quarter of fiscal 2019 included NSX. VMware stated that 82 companies of the Fortune 100 have adopted NSX.
VMware is well poised to benefit from the increasing adoption of cloud-based solutions. The company has been consistently taking initiatives to diversify its product portfolio to include most of the IT infrastructure. Acquisitions of Desktone and Airwatch have significantly strengthened its position in this regard.
VMware also reported impressive second-quarter fiscal 2019 results. Both earnings and revenues increased on a year-over-year basis.
However, VMware’s margins are expected to be dampened by heavy spending. Intensifying competition is also a concern. The stiff competitive environment hurts VMware’s pricing power, which impacts profitability. Additionally, longer sales cycles remain a headwind for this Zacks Rank #4 (Sell) stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>