With only 2 or 3 million shares short, there's not enough short covering pressure to play this long at this point...
I presume alot of the 9 million traded today is daytrader churn, but that demand will fade away as well...
In the end, this report gives a relief rally to RedHat but its not a game changer...the concerns of slowing growth are still there and will play out (in my opinion).
Management claims that it could be more profitable if it weren't "strategically" investing is nonsense...manufactured to placate wall street and deceive fools. Don't be deceived...there is no cash flow hidden by the genius of strategic investing.
P.S. I do think RedHat is a great company and its product does save customers money.
But as far as the stock goes: GAME OVER. At least for a few years.
...not to mention that most of their "beat" was tax related. A tax credit, and a change in tax rate. Take those out and you have an average growth rate of revenues & profits at best. But hey, that's worth a 57x PE Ratio, right? LOL