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

Red Hat News

  • Why upstream contributions matter when developing open source NFV solutions.
    When software is developed using open source methods, an upstream repository of the code is accessible to all members of the project. Members contribute to the code, test it, write documentation and can create a solution from that code to use or distribute under license. If an organization follows the main stream or branch of the upstream code their solution will receive all the changes and updates created in the upstream repository. Those changes simply “flow down” to the member’s solution. However, if a member organization forks the code — if they create a solution that strays from the main stream — their solution no longer receives updates, fixes and changes from the upstream repository. This organization is now solely responsible for maintaining their solution without the benefit of the upstream community, much like the baby salmon that took a tributary and then have to fend for themselves rather than remain in the main stream and receive the benefit and guidance of the other salmon making their way to the ocean.
  • HPE and Red Hat Join Forces to Give Customers Greater Choice for NFV Deployments
    Hewlett Packard Enterprise ( NYSE : HPE ) and Red Hat, Inc. ( NYSE : RHT ) announced today they are working together to accelerate the deployment of network functions virtualization (NFV) solutions based on fully open, production-ready, standards-based infrastructures. HPE plans to offer ready-to-use, pre-integrated HPE NFV System solutions and HPE Validated Configurations incorporating Red Hat OpenStack Platform and Red Hat Ceph Storage for communications service providers (CSPs).
  • Red Hat Joins the OpenPower Foundation
    As part of our commitment to delivering open technologies across many computing architectures, Red Hat has joined the OpenPOWER Foundation, an open development community based on the POWER microprocessor architecture, at the Platinum level. While we already do build and support open technologies for the POWER architecture, the OpenPOWER Foundation is committed to an open, community-driven technology-creation process – something that we feel is critical to the continued growth of open collaboration around POWER.
  • Buy, Sell or Hold? Analysts Approach: HCA Holdings, Inc. (HCA), Red Hat, Inc. (RHT)?

Linux and FOSS Events

Kernel Space/Linux

Development News

  • Best practices for guiding new coders
    As the new year progresses, many free and open source projects are turning their attention to various formalized mentoring programs, such as Mozilla's Winter of Security, Outreachy, and (the program with my favorite name) the X.Org Endless Vacation of Code. Patterned after the success of Google's Summer of Code, these programs give many new programmers a chance to gain firsthand experience working within successful FLOSS (Free/Libre Open Source Software) projects and the projects themselves access to fresh talent.
  • Developing an nrf51822 based embedded device with Qt Creator and Debian
    I'm currently developing an nRF51822-based embedded device. Being one the Qt/Qt Creator maintainers in Debian I would of course try to use it for the development. Turns out it works pretty good... with some caveats.
  • How to create a look and feel theme
  • Qt Roadmap for 2017
    With Qt 5.7 and 5.8 released we have a completely new baseline for Qt 5 based applications and devices. In this blog, I want to provide a roadmap update on what we are currently working on in the Qt R&D and what the future directions are.
  • Qt's Roadmap For 2017: Graphics, An Exciting Qt 5.9/5.10
    Tuukka Turunen of The Qt Company has shared some of the project's goals for the 2017 calendar year in delivering Qt 5.9 and Qt 5.10 along with more point releases. Qt developers hope to make 2017 exciting by shipping Qt 5.9 in May and their hope is to ship Qt 5.10 this November.
  • Intend to retire perl-Log-Any-Adapter-Dispatch