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

GNOME Builder 3.22 Enters Beta with Many Vim Improvements, New Search & Replace

The GNOME Builder open-source IDE (Integrated Development Environment) designed for the GNOME desktop environment will soon get a major update as part of the upcoming GNOME 3.22 release. Read more

Geary 0.11.2 Email Client Improves Showing of Right-To-Left (RTL) Messages

A new version of the popular Geary open-source email client for GNU/Linux distributions has been made available for download earlier today, August 28, 2016. Read more

How To Turn On Num Lock Automatically On Startup In Linux

One of the frustrating thing in most Linux distros is that the Num Lock is not enabled on startup. Whenever I start typing my password at system login screen, the focus goes out of the password field. It happens very often with people and this little problem is very irritating. But don't worry. You can set your Linux to enable Num Lock automatically on startup. Read
more

Windows 10 vs. Linux Radeon Software Performance, Including AMDGPU-PRO & RadeonSI

As alluded to earlier and on Twitter, the past few days I have been working on a fresh Windows 10 vs. Ubuntu Linux graphics/gaming performance comparison. This time it's looking at the latest Radeon performance using an R9 Fury and RX 480. Tests on Windows were obviously done with Radeon Software Crimson Edition while under Linux were the two latest AMD/RTG Linux driver options: the hybrid AMDGPU-PRO driver and the fully open-source driver via Linux 4.8 and Mesa 12.1-dev. Read more