Quite a roller coaster
VMware shares lost a third of their value yesterday, closing down $28.13 to $54.87. EMC, which owns about 86 percent of VMware, slumped $1.02, or 6 percent, to close at $15.89.
EMC chief executive Joe Tucci called the sharp drop in VMware shares "a hell of a reaction," and blamed it on a jittery market that's declined about 6 percent since the start of the year. "You've got a very fidgety market out there," said Tucci. He also noted that VMware only began trading last August, when EMC sold 10 percent of the company to the public. Originally priced at $29, VMware shares soared as high as $125 last fall, but drifted lower even before the earnings report. "It's a young company, it's only been trading for two quarters, and there'll be some volatility," Tucci said.