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

[Wallpapers] Samsung Gear 2 / Gear 2 Neo and Galaxy Backgrounds Vol 26

Its Tizen Smartwatch Bling time as we present you with Volume 26 of our Wallpapers for your Tizen Samsung Gear 2 / Gear 2 Neo and Galaxy wrist buddies. This collection has mixed content from landscapes, futuristic, and even super heroes. We hope you find them useful. Read more

MediaTek launches developer portal, debuts Android SDK

MediaTek announced a Mediatek Labs hacker site, plus a MediaTek SDK for Android and a “LinkIt” RTOS that runs on an ARM-based, IoT-oriented “Aster” SoC. For years, Taiwan-based MediaTek has offered ARM-based system-on-chips for Android, starting with the budget market, but more recently offering powerful SoCs such as the MediaTek MT6595, an octa-core SoC with four 2.5GHz Cortex-A17 cores. Now, the company is extending its development support by launching a MediaTek Labs portal division based in Silicon Valley. The first offerings include a preview release of MediaTek SDK for Android, which provides a set of extensions that build on Google’s Android SDK. Read more

The skinny on thin Linux

Much commotion has surrounded this column in the past few weeks. Not even counting the systemd discussion, my call for a server-only Linux distribution that does not support any desktop applications or frameworks caused a tizzy, mostly from folks who couldn't quite grasp that I wasn't only talking about not selecting desktop packages during installation. Read more

CipherShed: A replacement for TrueCrypt

While the Open Crypt Audit Project, headed by cryptographer Matthew Green and Kenneth White, Principal Scientist at Social & Scientific Systems, has been considering whether to take over the development of TrueCrypt and is working on the second phase of the audit process (a thorough analysis of the code responsable for the actual encryption process), one of TrueCrypt's developers has expressed his disapproval of a project that would fork the software. Read more