Credit Suisse Disruptive Technology Portfolio Mover Of The Week: Red Hat
Investors fear open source vendor may be facing price competition.
Red Hat shares marched higher last week as rumors that Oracle might create its own version of a Linux-based operating system proved false. Investors had reason to worry: Oracle CEO Larry Ellison told The Financial Times in April that his company was considering developing its own version of the Linux operating system. Industry blogs speculated that Oracle was going to use the LinuxWorld Expo in San Francisco this month as a forum to announce a competitive move against Red Hat, a longtime partner.
In the week's first half, when most tech stocks were surging on good inflation news, Red Hat traded flat. But as LinuxWorld drew to a close, it became apparent that Oracle would make no announcement. Red Hat shares rallied, and renewed optimism drove the stock up 9% over five days.
Last week, the Credit Suisse Disruptive Technology Portfolio reversed gains and closed down 1.1% from the previous week. The index closed lower than the S&P 500, which also declined 0.2% in the same period.
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