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

Android Leftovers

The Lenovo T450s Is Working Beautifully With Linux

A couple weeks ago I bought the Lenovo T450s, this is my first laptop-upgrade in about three years and I have to say... I am so glad that I did upgrade. Over the last two weeks I've been using the T450s as my daily-driver and its been working almost perfectly under Fedora Linux. Read more

Elementary OS 0.4, Dubbed Loki, Will Come With Impressive Features

Among others, Elementary OS 0.4 Loki will bring support for Wayland, Red Hat’s new display server, support for HiDPI high resolution displays will be implemented, AppCenter (a new Software Center) will replace the existing one. Also, an elementary Account will be created for connecting the users with the elementary services and other elementary users, new user account pictures, improved icons and smarter audio management will be implemented, support for synchronizing system settings will be added, while automatic driver detection during installation, smarter software updates, AppArmor integration are also planned. Read more

Red Hat News