He explains software companies are experiencing server sprawl (kind of like urban sprawl for computers.) Virtualization software provided by VMware reduces the amount of servers a company needs.
Guy expects this to be the biggest boon in technology in the last 10 years. He says this will change the way things are done and could affect companies that sell servers.
Guy predicts that EMC will go up to a $23 - $24 handle. (It’s worth noting on July 12th the stock closed at $19.25)
Jeff Macke tells the panel he’s long EMC and Pete adds he thinks EMC is the best stock of all the “back-end” names.
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Trader disclosure: On July 12th 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Macke Owns (EMC), (SWY), (JWN); Bolling Owns (MPEL), (ICE), (NMX), Gold, GE Is The Parent Company Of CNBC