Seeking Alpha
Editor's notes: With Amazon-related fears exaggerated, RHT faces a lower bar and the chance to outperform. A good quarter and long-term drivers could lead to 20-30% upside.

Red Hat (RHT) has gotten drubbed this past quarter down 8% since they last reported and is massively underperforming the overall market, down 14% year-to-date. RHT has been a targeted enemy and victim of Amazon (AMZN) Web Services' (aka AWS) improved standing and last quarter's billings shortfall threw gas on the fire. The billings shortfall was misleading given the nature of long-term deals booked by its direct sales force. While AWS's impact on all of technology is irrefutable given its size, scale, and increasingly enterprise-level quality, the near-term impact on RHT is exaggerated. Brokers have taken to downgrading the stock en masse with two high profile brokers cutting their ratings this quarter alone. Checks on RHT...

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