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

Windows Phone Shrinks In Android-Dominated Europe, As New iPhones Boost iOS’ Share

Spare a thought for Microsoft, a relative newcomer to the mobile making business, after Redmond completed its $7.2BN+ acquisition of former European mobile making powerhouse Nokia earlier this year. If Microsoft was hoping to see quick marketshare wins in Europe once its hands were fully on the levers of production that has not come to pass. The latest 12-week smartphone sales figures from Kantar Worldpanel ComTech, up to this September, indicate that Windows Phone’s already small share of the smartphone market has shrunk in Europe — dropping 0.3 percentage points in aggregate across the top five markets in Europe (the UK, France, Spain, Italy and Germany). Read more

35 Essential Android Apps for Daily Use

This list of essential Android apps are the ones you must have apps you need every day. They help with email, weather, music, and handful of other essential tasks. Read more

Linux Kernel Finally Being Optimized For SSHDs

The Linux kernel is finally being optimized for use of solid-state hybrid drives (SSHDs) that follow the ATA 3.2 standard. Read more

A Good Puppy, Urban Legends, and Kubuntu Plasma 5

While perusing the nighly newsfeeds the release of Puppy Linux 6.0 was mentioned. Jonathan Riddell said the next release of Kubuntu will feature Plasma 5 and Chris Hoffman is reporting Unity 8 will allow more privacy. And finally tonight, Bruce Byfield has seven reasons LibreOffice is better than OpenOffice. Read more