CBS Marketwatch: Linux stocks surge with IBM backing

"Shares of recently battered Linux-related stocks surged Wednesday after Lou Gerstner, IBM's chief executive, announced Tuesday that Big Blue will invest $1 billion in Linux next year...."

"Doubts are lingering that the Linux companies will be successful long-term. While it's clear that IBM will benefit from Linux hardware sales, VA Linux could be challenged in competing with Big Blue. It may be difficult for the Linux-related companies including Red Hat to compete for large service contracts. And profit from Linux software in 2001 may be elusive, at best."

"'This is more of a short-term impetus for the stocks right now,' said Keith Bachman, analyst with ABN Amro. 'We don't see the long-term trends for either VA Linux or Red Hat sustaining this rally.'"

Complete Story

Related Stories:

• Motley Fool: IBM Keeps Backing Linux(Dec 13, 2000)
• Ch@nnelWeb: Gerstner: IBM To Place Billion-Dollar Bet Linux Could Overtake NT(Dec 13, 2000)
• CNET News.com: Red Hat shares climb on earnings optimism(Dec 13, 2000)
• FT.com: IBM to spend $1bn on Linux(Dec 12, 2000)
• The Hindu Business Line: Will Linux rule at Microsoft's expense?(Dec 12, 2000)
• ZDNet UK: Gerstner's $5bn spending spree includes $1bn IBM investment in Linux next year(Dec 12, 2000)
• CNET News.com: IBM to spend $1 billion on Linux in 2001(Dec 12, 2000)
• Enterprise Linux Today: With DB2 Mainframe, Clustering Support, IBM Has Linux Marketing Covered(Dec 12, 2000)