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VMware Stock Is Showing Strong Growth Momentum

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Strong rally continues

VMware (VMW) has risen 6.5% in the last month, whereas in the last year, the stock has risen 61.8%. VMware stock is trading 68.5% higher than its 52-week low of $85.7 and 12.5% lower than its 52-week high of $165. The stock has maintained a strong bull run in the last two years.

However, in the last five days, the stock’s price has fallen 3.1%. In the chart above, we can see VMware’s returns. In the last 12 months, it has produced the highest return, while in the last five days, it has generated a negative return.

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Factors influencing the stock’s price

VMware continues to gain from its solid product portfolio supporting network virtualization. Moreover, the strong growth of cloud technology in different industries has further contributed to the company’s business. The company’s SDDC (software-defined data center) technologies allow its clients to expand their private clouds to public cloud platforms, thereby allowing them to run, manage, secure, and connect all users’ applications across all clouds and devices. Such strong product demand is already being reflected in the stock’s price movements.

Stock price movements of peers

In the last year, the share prices of IT companies Nutanix (NTNX), Citrix (CTXS), and Red Hat (RHT) have maintained solid upward trends. During the period, these IT stocks have risen 160.6%, 28.3%, and 44.5%, respectively. Strong demand for cloud computing and the ongoing digitization trend across enterprises continues to drive the businesses and stock prices of these companies.

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