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Forbes: Linux-mania boosts Cobalt

Dec 01, 1999, 07:40 (0 Talkback[s])
(Other stories by Om Malik)

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"Cobalt Networks is the latest Linux-related company to catch Wall Street's imagination. After going public at $22 per share on Nov. 5, the thin-server maker has seen its stock jump 620% to $160 and is rising...."

"We are certainly flattered by the valuation being put on us, and now we have to work hard to deliver on the promise," says Stephen DeWitt, president and chief executive officer of the company, which had sales of $13.8 million in the first nine months of 1999. Cobalt lost $13.7 million over those three quarters...."

"Investors are betting that Cobalt will own this space and have accorded a $4 billion valuation on the company. Interestingly, Cobalt has sold only 17,000 appliances for about $2,000 each in its three-year life. The stock market, however, is putting a value of $236,000 on each device it has sold so far despite the fact that this remains a very crowded marketplace."

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