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Forbes: Wall Street Sours on Linux

[ 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.”

Complete
Story