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Red Hat's stock price now higher than Microsoft's

Anonymous Coward writes | more than 4 years ago

Red Hat Software 3

isabright (666) writes "Did anyone see this historic event coming? As of the last Nasdaq trade on October 19, 2009, Red Hat’s share price stood at $28.46 with the mighty Microsoft in its shadow at $26.36. That's right, the Linux vendor Red Hat now has a higher share price than Microsoft and it isn't due to the dotcom boom. Who said you can’t make a business out of free software? What’s more, the growth in the value of each share tells a very different story. According to Nasdaq data, since 2001 Red Hat has experienced more than 600 per cent growth, while during the same period Microsoft has experienced negative growth of its share price. How long will it take Microsoft to regain its lost share value?"
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3 comments

And? (0)

Anonymous Coward | more than 4 years ago | (#29808841)

Meaningless, unless you tell us how many shares each company trades... My company, AC Inc, is worth $28.47. We've issued one share, to me. Our share price is higher than Red Hat's! Woohoo.

Correct (1)

br00tus (528477) | more than 4 years ago | (#29811757)

Red Hat is divided into 187 million shares. Microsoft is divided into 8 billion shares. The net worth of Microsoft is 44 times that of Red Hat. I would love to see Red Hat overtake Microsoft, but we're nowhere near that.

Which stock would you want to own? (1)

kaaona (252061) | more than 4 years ago | (#29813015)

For years we've watched buttoned-down stock market analysts downplay the viability of Red Hat's fee-for-service business model. At the same time those analysts have fawned all over Microsoft as a can't-lose financial juggernaut -- much like Wal-Mart. In hindsight in recent years it looks like Microsoft now has more in common with General Motors of the '70s and '80s than with Wal-Mart. Their product lines are bloated, over-priced, have poor quality, and are widely perceived as both cumbersome and unsafe to operate. Also like GM, Microsoft seems to have lost touch with the needs and frustrations of its rank & file customers. Unless Windows 7 is a boffo hit in the consumer market, no amount of corporate sales will prevent it from becoming the next GM of the stock market. This morning a Dow-Jones analyst writes "Microsoft Corp. (MSFT) is expected to post sharp declines in profit and sales when it reports fiscal first-quarter results before the market opens Friday, as the software giant struggles to rebound from a disastrous weakening of demand for its software." Red Hat, on the other hand, has been making steady inroads in corporate America, Europe, and China by providing targeted, high-performance and cost-competitive software alternatives to Microsoft products. S&P analysts are predicting 12-month target prices of $27 for both, despite negative forecasts for Microsoft and positive for Red Hat.

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