VMware (VMW), last summer’s hottest tech IPO, is getting smoked today after announcing a CEO change and a slight downward revision to its 2008 revenue forecast (VMW Press Release).
When they reported 1st quarter earnings on April 22 they forecast 2008 revenue growth of “approximately 50%” over 2007. In today’s press release, they said they expected 2008 revenues to be “modestly below” the previous guidance of 50% growth over 2007.
Shares are getting torched, down 27% on big volume (VMW YTD Chart).
Parent company EMC (EMC), which owns about 85% of VMware, is also getting torched and is the most actively traded stock on the NYSE and Nasdaq today.
This reminds me of the action in NVIDIA (NVDA) on Thursday. Previously hot stocks are being given no leeway in the current environment.
Disclosure: Top Gun has no position in VMware (VMW) or EMC (EMC) shares.