Can VMware stand a recession-driven hit to IT spend?

IT spend usually takes a hit when a recession is nigh, but VMware Inc (NYSE: VMW), as per CEO Rangarajan Raghuram, has not seen such a slowdown so far.

Demand to remain strong through the balance of 2022

The cloud computing and virtualisation technology company recently reported market-beating results for its fiscal second quarter. This morning on CNBC’s “TechCheck”, the chief executive said:

The California-based company ended Q2 with $12.10 billion of remaining performance obligations, up 8.0% on a year-over-year basis.

Wall Street currently recommends that you buy VMware stock as it has upside to $139 on average that translates to a 20% increase from here.

VMware launches a multi-cloud management portfolio

Also on Tuesday, VMware unveiled “Aria” for multi-cloud management at “Explore” – it’s flagship conference that was previously known as “VMworld”. CEO Raghuram added:

Earlier this year, Broadcom said it will buy VMware for $61 billion in cash and stock (one of the largest takeovers ever in the tech space).

The transaction is expected to complete in its fiscal 2023 so long that it secures regulatory and shareholders’ approval.