Salon: After the fall [VA Linux and Red Hat stock slump]Apr 28, 2000, 04:28 (9 Talkback[s])
(Other stories by Janelle Brown, Damien Cave, Andrew Leonard)
"If you've been reading the headlines you might think that the entirety of Silicon Valley is in a panic, as the stock market teeters precariously to and fro. Not so, or at least not visibly."
"Few companies fit the role of poster boys for the stock market roller coaster of the last six months better than Linux start-ups Red Hat and VA Linux. Acclaimed as Wall Street's darlings after their stunning 1999 public offerings, both companies have of late been plagued with an unremitting stream of bad press as their share prices have declined. VA Linux is currently trading at $39, down from a high of $320. Red Hat is at $26 -- call it $52 to account for a split, but that's still down significantly from a pre-split high of $151."
"Both companies also lumber under the additional burden of being treated as canaries in the Linux gold mine. Red Hat's IPO was widely considered a validation of the commercial potential of Linux. But its stock price slide is now hailed as proof that there is no money to be made in the entire Linux sector."