Language Selection

English French German Italian Portuguese Spanish

Red Hat's Valuation Finally Matters

Filed under
Linux

While I've always had my doubts about Red Hat's (RHT) long-term growth potential in cloud and virtualization services, management systematically found ways to convince the Street that the company was turning the corner and averting threats from rivals including Oracle (ORCL) and VMware (VMW).

So, ahead of the company's fiscal second-quarter results, investors -- still casting their lot towards long-term revenue growth -- didn't mind paying 67 times earnings for the stock, which at the time was five times more than both Microsoft (MSFT) and Oracle.

However, following Red Hat's announcement, which included worse-than-expected guidance, the valuation issue finally came home to roost. As the stock dropped to an intraday low of 12%, I still wasn't convinced that investors got the message.

This has been a recurring theme for Red Hat. Truth be told.




More in Tux Machines

Leftovers: Software

Emulation or WINE

Fedora: The Latest

  • New "remi-php71" repository
  • PHP on the road to the 7.1.0 release
  • First round of Fedora 24 Updated Lives now available. (torrents expected later this week)
    As noted by my colleague on his blog the first round of F24 Updated Lives are now available and carry the date 20160720, Also as mentioned last week on his blog F23 Respins are not going to be actively made, however we and the rest of the volunteer team will field off-off requests as time and resources permit. We are considering a new/second tracker for the Updated Spins but as of today there are only .ISO files available at https://alt.fedoraproject.org/pub/alt/live-respins [shortlink] F24 Live-Respins . The F24 respins carry the 4.6.4-200 Kernel and roughly ~500M of updates since the Gold ISOs were released just 5 weeks ago. (some ISOs have more updates, some less)

Leftovers: Ubuntu

  • Snappy Packaging Happenings In The Fedora, Arch Space
    This week Canonical hosted a Snappy Sprint in Heidelberg, Germany where they worked to further their new package management solution originally spearheaded for Ubuntu Touch. This wasn't an Ubuntu-only event, but Canonical did invite other distribution stakeholders. Coming out of this week's event were at least positive moments to share for both Arch and Fedora developers. The Arch snaps package guy made progress on snap confinement on Arch. Currently when using Snaps on Arch, there isn't any confinement support, which defeats some of the purpose. There isn't any confinement support since it relies upon some functionality in the Ubuntu-patched AppArmor with that code not yet being mainlined. Arch's Timothy Redaelli has got those AppArmor patches now running via some AUR packages. Thus it's possible to get snap confinement working on Arch, but it's not yet too pleasant of an experience.
  • PhantomJS 2.1.1 in Ubuntu different from upstream
    At the moment of this writing Vitaly's qtwebkit fork is 28 commits ahead and 39 commits behind qt:dev. I'm surprised Ubuntu's PhantomJS even works.
  • Ubuntu 16.04.1 LTS released
    Ubuntu 16.04 is a LTS version of Ubuntu.Now Ubuntu team has announced the release of it's first point release,Ubuntu 16.04.1.This first point release includes many updates containing bug fixes and fixing security issues as well and as always what most of users want from a distribution and most of distributions tries to perform,Stability.This release is also well focoused on stabilty as Ubuntu 16.04.