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

Open source data integration with Karma

Karma is a free, an open source data integration tool that makes it easy to convert data from a variety of formats into linked data. I recently attended a half-day workshop on Karma with Pedro Szekely, our instructor. He started by warning us that he knows very little about libraries, but a ton about data. The files we needed for the workshop were on GitHub, if you’re interested in checking it out. You can follow the tutorial steps on the Wiki, and, of course, you can find Karma itself on GitHub. Read more

Linux Kernel 2.6.32.66 LTS Brings x86, Networking, and File Systems Improvements

Willy Tarreau, the maintainer of the 2.6 kernel branch, announced a few minutes ago the immediate availability for download of the sixty-six maintenance release of Linux kernel 2.6.32 LTS. Read more

elementary OS "Freya" Finally Gets Custom Keyboard Shortcuts

elementary OS "Freya" has been out for some time now, but developers are still adding features to it despite the fact that it has been dubbed stable. Now, users have the option to define custom keyboard shortcuts, which was a very sought after feature. Read more

A Linux proud history – 15 years ago and the Brazilian ATM

The history i want to share with you is how that “marble Tux” happens. Yes, it was a production machine that you see in the picture and was running in every place in Brazil for at least 10 years. So, a 25 years old boy, in this case me, the guy typing now, who was working in a ILOG graphical toolkit partner suddenly decide to look for Linux jobs, it was out of university for 1 year, but was already infected for the open source and Linux for more than 3 years, and thought it can be done. Read more