Rivals such as
are not going to sit idle and wait for Citrix to sort things out. This is even though Citrix might be able to beat them on cost. What's more, the PC virtualization market won't last forever. After all, it's no secret that PCs are seeing less and less demand. This causes me to wonder what will happen should the market start focusing more on mobility. Which company will rush to set the standard?
Not to take anything away from Citrix's performance. Admittedly, the company operates a sound business in a growth industry and has an excellent management team steering the ship. I still wonder if its business fundamentals and the future of the sector support its current valuation.
As the future of IT takes shape it will be interesting to see not only what becomes of virtualization, but how the sector evolves in terms of valuation. Or more specifically, will cloud companies trade at more reasonable levels?
The company's performance continues to demonstrate how corporations are depending more and more on its products and services. With that, Citrix has emerged the leader in the market by having established itself as the go-to vendor.
However, I wonder is it 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.
At the time of publication, the author held no position in any of the stocks mentioned
This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.