Morningstar Rating

Stock Research and Analysis

by Norman Young

Bulls Say

As a leading voice in the open-source community, Red Hat has more than 60% of the Linux server OS market.
Linux OS has been the fastest-growing server OS over the past decade, replacing Unix and other proprietary systems.
Red Hat has made some progress duplicating its Red Hat Enterprise Linux success with open-source middleware, virtualization, storage, and IT management tools. Read more 

Bears Say

The rise of cloud computing and public cloud vendors such as Amazon, Microsoft, and Google may marginalize Red Hat's offerings.
Competing Linux OS service providers have popped up, including Oracle Red Hat Linux.
If the open-source community does not continue to develop the Linux kernel, Red Hat would be forced to dramatically increase spending on research and development. Read more 

Management

We have assigned a Standard Stewardship Rating to Red Hat. James Whitehurst has been president, CEO, and a board member since January 2008. He was COO of Delta Air Lines from July 2005 to August 2007, helping to shepherd the airline through its bankruptcy   Read more 

Profile

Red Hat provides services for its version of the open-source (free from licensing costs) Linux software operating systems, middleware, storage, virtualization, and management   Read more 

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