“Revenue doesn’t meet expectations, but so what?“
“What a life! Red Hat, the Linux giant, didn’t meet revenue
expectations, reporting a loss slightly greater than $3.6 million,
5 cents a share, for fiscal third quarter–but its stock continues
to surge higher anyway. In terms of gross revenue, Red Hat reports
$5.4 million in the quarter, well over 1998’s third-quarter revenue
of $3.3 million.”
“Why the rise? Simple, Red Hat’s board of directors declared a
2-for-1 stock split, to be effected by all stockholders of record
at the close of business on Dec. 27, 1999 The additional shares
will be issued on or about January 7,2000.”