Investopedia: A Minor Slip Sends Red Hat Skidding

Sometimes it seems that Wall Street drives the news more than the news drives Wall Street. In other words, investors interpret events and information in ways that are consistent with how they already want to view the world. Maybe that explains why stocks often sell off on good news or rise on bad news. In the case of Red Hat (NYSE:RHT), for instance, this software and service provider showed a fair bit of financial progress in the fiscal third quarter, but Wall Street seems hung up on a minor guidance revision and appears to be looking for an excuse to sell.

Solid Third Quarter Performance  
Red Hat announced that revenue rose 23% for the Q3, with subscription revenue up about 24%. Billings growth (which is revenue plus the change in deferred revenue) was up 23% for the period. For the quarter, Red Hat did well with large deals - signing 27 deals worth more than $1 million and 5 deals in excess of $5 million.

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http://stocks.investopedia.com/stock-analysis/2011/A-Minor-Slip-Sends-Red-Hat-Skidding-RHT-ORCL-MSFT-SAP-IBM-HPQ-CRM1220.aspx