VMware shares drop 8 pct after Reuters analysis

VMware shares fell almost 8 percent in 2 days after a Reuters analysis on July 6 predicted that the richly valued stock would fall because the company faces a series of obstacles, including new competition from Microsoft. The piece pointed out that VMwares trades at a P/E ratio that is double that of Microsoft and only two of 31 analysts who follow the company have a buy` recommendation on the high-flying stock.