Josh Burwick
Long/short equity, growth at reasonable price, tech, Venture capital

Red Hat: Take Advantage Of Investors Being Offsides For 10%+ Move This Week

Red Hat (NYSE: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 (NASDAQ: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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