Should I Buy VMware (VMW)? Finance YouTuber Analysis

The YouTuber sees VMware as a 'win-win' scenario. If Broadcom's acquisition is approved at $60 billion, it offers a quick 5% pop. However, if the acquisition is blocked by regulators, he finds VMware attractively priced at just four times revenue with 7% sales growth expected next year, making it a buy in that scenario.

“If not though if this acquisition is uh is called off because of a regulatory approval shares of BMW look attractively priced at just four times revenue and and sales growth of seven percent a year next year.”

The YouTuber views VMware as attractively priced, trading at a discount to Broadcom's acquisition offer due to regulatory uncertainty. He notes that even without the merger, the stock is appealing based on expected earnings of $7.25 per share and solid sales growth, suggesting it's a 'win-win' for investors.

“shares of BMW are now trading 15 below that offer price... this stock is attractively priced on on just expected earnings and it could be a win-win situation for investors earnings are expected to seven twenty seven dollars and twenty five cents a share this year to gross 12 this year uh you know 12 next year on seven percent sales growth so that's a solid double digit return either way on this stock”

The YouTuber suggests buying VMware due to its announced acquisition by Broadcom for $142.50 per share. Despite the agreement, the stock is trading at a 20% discount to the acquisition price, presenting an arbitrage opportunity. The deal is expected to close after November with no significant regulatory hurdles.

“shares of vmware are trading at a 20 discount to that purchase price”