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

Hands-On: More adventures with Manjaro-ARM for the Raspberry Pi 2

In my previous post I celebrated the announcement of Manjaro-ARM Linux for the Raspberry Pi 2. I installed it on my Pi 2 with no problems, and I was ready to continue experimenting and investigating with two major objectives - how complete/stable is it, and what are the chances of getting the i3 window manager working on it? Read more

Canonical Will Be Present at MWC 2016 to Showcase Its Ubuntu Convergence

MWC (Mobile World Congress) 2016 is almost upon us, and one of the biggest attraction there will be, of course, Canonical's latest Ubuntu convergence features, which the company behind the world's most popular free operating system will showcase on the new BQ Aquaris M10 Ubuntu Edition tablet device. Read more

Benchmarks Of The ODROID-C2 64-Bit ARM Development Board

Earlier this month Hardkernel announced the ODROID-C2 as a 64-bit ARM development board that would begin shipping in March. Fortunately, you don't need to wait until next month to find out how this $40 USD 64-bit ARM development board is performing: here are some benchmarks. Read more

Pinterest open-sources its Teletraan tool for deploying code

As promised last year when the company introduced it, Pinterest today announced that it has released its Teletraan tool for deploying source code on GitHub under an open source Apache license. “Teletraan is designed to do one thing, deploy code,” Pinterest software engineer Baogang Song wrote in a blog post. “Not only does it support critical features such as zero downtime deploy, rollback, staging and continuous deploy, but it also has convenient features, such as displaying commit details, comparing different deploys, notifying deploy state changes through either email or chat room, displaying OpenTSDB metrics and more.” Read more