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Forbes: Wall Street Sours on Linux

Apr 18, 2000, 07:24 (6 Talkback[s])
(Other stories by David Einstein)

[ Thanks to Phillip Brown for this link. ]

"Easy come, easy go. That's the story of Linux stocks, which were Wall Street darlings last year but have been absolute poison ever since...."

"Like many dot-com companies, Linux providers seem to be plummeting to Earth after enjoying a giddy ride based on unrealistic valuations. "These companies were bid up in a kind of pyramid scheme," says Rob Enderle of Giga Information Group. By that he means that the more people there were to invest in them, the more people wanted to invest. "It was like gambling," he says. " They didn't really understand the fundamental nature of the companies."

"And the free fall may not be over. Because most Linux companies are really service companies (the actual Linux software is available for free), Enderle figures that they don't have an enormous upside revenue potential. "The stocks could come down even more," he says."

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