Language Selection

English French German Italian Portuguese Spanish

Red Hat's Valuation Finally Matters

Filed under

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

KTU exams to run on open source software

All examinations of the A.P.J. Abdul Kalam Technological University (KTU) — which run on an online platform — would switch to open source software from the second semester onwards. For the first semester examinations, the KTU would use a proprietary, Microsoft, software. In response to demands from student organisations, the KTU has pushed back its first semester examinations by two days. The first of the examinations would now begin on December 4 instead of December 2. The first of the results would be published on December 19. Read more Also: KTU goes ahead with exam outsourcing

CMS News

Security Leftovers

  • Friday's security updates
  • Researchers poke hole in custom crypto built for Amazon Web Services
    Underscoring just how hard it is to design secure cryptographic software, academic researchers recently uncovered a potentially serious weakness in an early version of the code library protecting Amazon Web Services. Ironically, s2n, as Amazon's transport layer security implementation is called, was intended to be a simpler, more secure way to encrypt and authenticate Web sessions. Where the OpenSSL library requires more than 70,000 lines of code to execute the highly complex TLS standard, s2n—short for signal to noise—has just 6,000 lines. Amazon hailed the brevity as a key security feature when unveiling s2n in June. What's more, Amazon said the new code had already passed three external security evaluations and penetration tests.
  • Social engineering: hacker tricks that make recipients click
    Social engineering is one of the most powerful tools in the hacker's arsenal and it generally plays a part in most of the major security breaches we hear about today. However, there is a common misconception around the role social engineering plays in attacks.
  • Judge Gives Preliminary Approval to $8 Million Settlement Over Sony Hack
    Sony agreed to reimburse employees up to $10,000 apiece for identity-theft losses
  • Cyber Monday: it's the most wonderful time of year for cyber-attackers
    Malicious attacks on shoppers increased 40% on Cyber Monday in 2013 and 2014, according to, an anti-malware and spyware company, compared to the average number of attacks on days during the month prior. Other cybersecurity software providers have identified the December holiday shopping season as the most dangerous time of year to make online purchases. “The attackers know that there are more people online, so there will be more attacks,” said Christopher Budd, Trend Micro’s global threat communications manager. “Cyber Monday is not a one-day thing, it’s the beginning of a sustained focus on attacks that go after people in the holiday shopping season.”

Openwashing (Fake FOSS)