Judging by the multiples at which these stocks trade, it seems not only is the market expecting great things from these companies, but the companies themselves are expecting great returns from their services as evident by their CAPEX spending and their internal focus toward R&D.
The good thing is, at least expectations are in line. However, as Wall Street works toward sorting all of this out, I wonder if it is prudent to continue to throw valuation metrics out of windows for a market that has yet to prove which players will survive and which ones won't.
One other name that is rarely mentioned in these discussions is that of Citrix Systems(CTXS_). If one company deserves the title of "cloud pioneer" or even the "founder of virtualization," it would be Citrix as its partnership with Microsoft(MSFT_) has long made it the standard for anytime/anywhere computing since its founding over two decades ago.
It seems, however, that as names such as F5(FFIV_), Cisco(CSCO_) and the aforementioned VMware continue to get the lion's share of the headlines. Investors often interpret this as having a better business or even a better product. But the fact of the matter is Citrix has emerged as the leader in desktop virtualization by having established itself as the go-to vendor -- a market that will only grow as more companies move to a virtualized environment. The company affirmed its positioning last week upon the release its first-quarter announcement -- one that reminded investors why Citrix will likely not be ignored for long
http://www.thestreet.com/story/11515088/1/whats-the-deal-with-citrix.html
http://www.thestreet.com/
http://bigcharts.marketwatch.com/default.asp
http://stockcharts.com/h-sc/ui
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