The Linux stock slide has been going on for months. Other Linux companies aren't faring well. Linux also competes with Windows, which is common in low-end servers. Linux is collectively developed by an informal network of programmers. Only some of the vast pool of developers work at Linux companies.
Profits are remote for many Linux companies.
Although analysts agree that Linux is a formidable force on the computing landscape, the tricky part is making money off the operating system's popularity. Analysts say future profits will largely come from consulting and service fees. Linuxcare said in a Securities and Exchange Commission filing that it expects to be unprofitable in 2000 and 2001. Red Hat expects profitability seven quarters from now, according to a company representative. VA chief executive Larry Augustin said analysts expect his Linux computer company to become profitable in late 2001 or early 2002.