NEW YORK (TheStreet) -- It's always been difficult trying to decide whether or not to make a play of desktop virtualization giant Citrix (CTXS). While there is plenty to like with the company's business, I've never been a fan of stocks that are priced for perfection.Perfection seems to be what investors are expecting from any company having anything to do with the "cloud." For investors, I cringe at what might happen should these growth expectations fail to meet perfect execution. On the other hand, Citrix continues to do what it can to see to it that this scenario never unfolds.
Rivals such as VMware ( VMW) and Red Hat ( RHT) 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?