NEW YORK (TheStreet) — It goes without saying that the stock market has become overly enamored with cloud companies and in particular those that specialize in virtualization such as VMware. Then there is the so-called “big data” provided by storage giant EMC, and the new cloud buzzword “SaaS” or “software as a service” — a specialty that has ignited a rash of M&A buying from names such as Oracle and IBM due to fears of being left behind.

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.
…

Click to view a price quote on CTXS.

Click to research the Computer Software & Services industry.

Originally posted here: What’s the Deal With Citrix?