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Raging Bull: Has Linux Bubble Burst?

Jan 17, 2001, 15:28 (53 Talkback[s])
(Other stories by Chet Dembeck)

"...I think it’s extremely important to revisit, reexamine and reevaluate one of the fair-haired segments of last year: companies touting various versions of the Linux operating system. Last year this sector had all the drama and glamour of a Hollywood flick, as Linus Tovalds, the Finnish native who helped create this free UNIX-based operating system, got almost as much press as Bill Gates."

"From the investor’s point of view, the Linux picture has been nothing short of disastrous. For example, share value in the once-mighty Red Hat has plummeted from its 52-week high of $148 to around $7 per share. Similarly, VALinux share price has fallen from a 52-week high of $179.25 to about $7 per share. Meanwhile, Caldera - which never reached the heights of its two rivals-is selling at about $2 per share, far off its 52-week high of $33 per share."

"This brings me to what I think is the fatal flaw in the promulgation of the Linux operating system: lack of profit motive up and down the distribution food chain. If the often vilified Bill Gates proved one thing by making Windows the most-widely used operating system in the world it is this: profit motivates. Put another way: money talks and bull excrement walks."

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