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

Debian and Derivatives

  • Glad to be a Mentor of Google Summer Code again!
    While, why I proposed this idea? Plinth is developed by Freedombox which is a Debian based project. The Freedombox is aiming for building a 100% free software self-hosting web server to deploy social applications on small machines. It provides online communication tools respecting user privacy and data ownership, replacing services provided by third-parties that under surveillance. Plinth is the front-end of Freedombox, written in Python.
  • The #newinstretch game: new forensic packages in Debian/stretch
    Debian/stretch AKA Debian 9.0 will include a bunch of packages for people interested in digital forensics. The packages maintained within the Debian Forensics team which are new in the Debian/stretch release as compared to Debian/jessie (and ignoring jessie-backports):
  • Getting ready for Stretch
    I run about 17 servers. Of those about six are very personal and the rest are a small cluster which are used for a single website. (Partly because the code is old and in some ways a bit badly designed, partly because "clustering!", "high availability!", "learning!", "fun!" - seriously I had a lot of fun putting together a fault-tolerant deployment with haproxy, ucarp, etc, etc. If I were paying for it the site would be both retired and static!)
  • Devuan Jessie 1.0.0 stable release (LTS)
    Once again the Veteran Unix Admins salute you! Many of you might remember November 2014 when we announced that we were going to fork Debian. Well, we have done exactly that. It has been a long process, but now over two years later, we proudly present Devuan Jessie 1.0.0 Stable.
  • Parsix GNU/Linux Is Closing Its Doors, All Users Will Be Migrated to Debian 9
    You know we hate to give you guys bad news, but it looks like the Parsix GNU/Linux project is closing its doors in about six months after the release of the Debian GNU/Linux 9 "Stretch" operating system.

OSS Leftovers

Ubuntu-Based Alternatives and Snapcraft 2.30

  • ​How to install Linux Mint on your Windows PC
    I think Linux Mint isn't just a great desktop, it's a great replacement for Windows. With Windows security problems such as WannaCry, people are starting to explore alternatives to Windows. I got a number of requests about switching out from Windows to the latest and best Linux. For me and many other experienced Linux users that's Linux Mint 18.1. You don't need to be a Linux expert to install Mint on a Windows PC. Here's how to do it.
  • Distro watch for Ubuntu lovers: What's ahead in Linux land
    With the death of Unity, Canonical will focus more attention on Ubuntu servers, Ubuntu in the cloud and Ubuntu in the so-called Internet of Things. Even if you give Canonical the benefit of the doubt - that it will continue working on desktop Ubuntu - at the very least, desktop Ubuntu's future looks uncertain. Post Unity, how will the transition to GNOME work? Will existing Unity users be "upgraded" to GNOME with 17.10? Canonical is reportedly plotting out solutions to much of this uncertainty right now, but for users, the uncertainty rules the day.
  • Canonical Releases Snapcraft 2.30 Snappy Packaging Tool for Ubuntu Linux OSes
    Canonical's Sergio Schvezov was proud to announce the release and immediate availability of Snapcraft 2.30, a major milestone of the open-source Snappy packaging tool used to package apps in the Snap universal binary format.

An introduction to Linux's EXT4 filesystem

Although written for Linux, the EXT filesystem has its roots in the Minix operating system and the Minix filesystem, which predate Linux by about five years, being first released in 1987. Understanding the EXT4 filesystem is much easier if we look at the history and technical evolution of the EXT filesystem family from its Minix roots. Read more