EMC Spooks Investors
How much good news can the industry stand?
EMC Tuesday reported record revenue and very strong profit for all of 2102, and it said it would do very well in 2013 with revenue growth for the year expected to double that of the IT industry as a whole.
Investors reacted to the positive results by dumping EMC shares, prices of which plummeted by more than 8 percent Tuesday. The reaction stemmed from word that EMC was planning layoffs, that its VMware business growth next year will not meet expectations, and that its core storage growth will not meet expectations thanks to macroeconomic challenges.