Wednesday, April 4, 2012

Investopedia: Red Hat Back To More Familiar Growth

There's nothing like a great quarter to make investors forget about an allegedly bad quarter. While Red Hat (NYSE:RHT) shares were weak after the fiscal third quarter results, the fourth quarter results showed much of the strength that investors have become accustomed to in this name. Valuation is problematic, but that's hardly unusual with tech stories and it likely won't matter much until the market goes into another "risk-off" phase.

Companies like IBM (NYSE:IBM) and Oracle (Nasdaq:ORCL) set a fairly positive tone for the software market and Red Hat followed in that wake. Revenue rose 25% year over year. The company's self-reported billings proxy number rose 31% - more than 10% ahead of sell-side expectations and showing considerable acceleration from the third quarter.

Click here for more:
http://stocks.investopedia.com/stock-analysis/2012/Red-Hat-Back-To-More-Familiar-Growth-RHT-IBM-ORCL-CA0404.aspx

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