Their revenue seems to have missed the mark this past quarter. This number would worry me if I was long the stock:
VMware said the quarter's service revenue grew 48 percent to $213.3 million. The company added that its business mix continues to shift, with service revenue becoming a larger proportion of total sales. License revenue fell 13 percent during the quarter to $257 million.
That means for the time being people are sitting still and paying their service charges but are not ordering as many new copies of VMWare's Software. I think this may be because companies are trying to conserve cash by making due with what they have. So that means they are not looking to grow (and thus carry more virtual servers) for several quarters into the future. I think the stock might revisit lows and rebound once server software sales start to pick back up.
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