https://web.archive.org/web/20240821190218/https://seekingalpha.com/article/4716152-broadcom-vmware-is-driving-an-upgrade-in-business-quality
18 replies (most recent on top)
Pivotal is being chopped and written off now. 4 years later. That seems to be a safe timeline for SEC to not come after investor fraud. SEC already fined VMware for accounting fraud under Pat G. Thanks to all the EPIC2 craaaaap. Velo cloud next. Then the other acquisitions and finally VMware will be written off.
Intel argued that the general purpose CPU can handle AI. Got pummeled by NVDA. VMware argued that private cloud is good enough. Got pummeled by AWS, Azure and GCP. Pat G is a fixture in these failed enterprises. Intel lost 30% market cap in one day. The day people realize that the chinese revenues of Broadcom are just a sham, Broadcom will lose 50% of the market cap. Vmware revenues minus EUC and VMC and SDE and other ARIA chopping is what? So many SKUs are gone. Mostly VMware will be history in a couple of years. People will go to the public cloud in a much accelerated move. The public clouds are built on freeware and have been running for more than a decade. The VMware acquisition is just a cash out deal for the private equity players. They will write it off soon.
Medi(ocreoracle) VP is personally guaranteeing quality by being knee deep in customer cases. Got a naughty list and checking it thrice. That's why gets paid the big bucks. 😜
If I was a customer, I would be really scared of using VMware products. The new versions. Randomly cutting people using AI for a complex product. Cutting the lowly people who do the actual coding and other work and keeping all the politically savvy DEs who rose up in the high caste system. Proabably it works differently in Hardware companies. Or single play products like security. Definitely a disaster. I wouldn't touch VCF 9.0 with a 100 foot pole. I will wait for VCF 900.0.
Post from TheLayoff.com
Aren't you sick about repeating the same jingle, Mando?
What is unfortunate is that ht has created a culture of fear. People are afraid to speak up. A players have already left. Bc has a reputation with customers and it’s not a favorable one. Not sure how all this makes ht smart?
If you are the smartest one here why are you not the CEO, but Tan is??
Your first, biggest mistake is believing that the CEO is the smartest person in the company.
Looks like certainly you are grossly incompetent not deluded.
If you are the smartest one here why are you not the CEO, but Tan is??
Market cap can go up or down. Its just paper money. How does it impact debt and interest on debt? Looks like certainly you are grossly incompetent not deluded.
How is it 70 bn?
If you don't know how to read public reports put out by public companies, then either there is wilful self delusion or gross incompetence, both of which cannot be helped by anyone else giving you more information.
Broadcom is a PE firm operating with massive debt even before they bought VMware.
Overall debt is still 70 Billion
How is it 70 bn? When half of it is paid in AVGO shares??
Not disappearing with most of the rest of the content though, still a word on caution, don’t judge every thing you see from the past data, if pandemic has proven anything, whole world started handing financial crisis in a different way than in the past consumer seems to understand that and resilient.
One must constantly stay on top of current events and be cautious about protecting investment.
As for downfall f Broadcom, well the AI craze and data center upgrades are at full throttle, anticipating this trend to last for an year and half at least.
| massively cyclical, and heavily dependent on a few massive customers
90 Billion for 13 Billion in revenues of VMware. That is 7x. Overall debt is still 70 Billion. The fed has signaled rate cuts. But not sure of the magnitude or the path or the final rate. The stock market is still at all time highs. Housing market at all time highs. Gold at all time highs. Crypto close to all time highs. CPI is still 3 % which is 50% above 2% fed target.
Three paths for interest rates. Slow cutting every quarter and lows around 2% in 2026 end. Recession and immediate huge cuts. Or higher for longer as inflation picks up.
My guess is higher for longer. The PE funds with 7 trillion in total assets and several multiples of debt are going to get creamed. The collapse will playout in the next couple of years as inflation reemerges and surges higher. Fed will start taking rates to above 8%. And the PE funds interest costs will destroy them.
People should plan for a collapse and restructure of Braodcom in a couple of years. That is if you are still employed in Broadcom.
BendDO
Then why post which way you prefer being poked??
BendO
I’m not BendDO.
@mwd+1u9Q02vi
BendO
Yawn. Such STAGGERING insight! Imagine: Buying a high-margin software business based on subscription and run-rate revenue models with tens of thousands of customers, has diversified Broadcom's overall business footprint and made it less susceptible to variability in its legacy hardware business which is massively cyclical, and heavily dependent on a few massive customers.
My 10th grade son could have come up with more insightful analysis.
To infinity and beyond!
This is the way!