Red Hat shares down on competition news

While I can see how share of Red Hat could certainly drop should the situation call for it, I still don’t get how Oracle could be of any real threat.

RALEIGH, N.C. - Shares of Red Hat Inc., the largest distributor of the
Linux operating system, tumbled more than 7 percent Friday after a Wall Street analyst suggested that Oracle Corp. may soon introduce its own Linux products.
Red Hat’s stock finished the day at $19.90, a decline of $1.59, after briefly falling below its 52-week low to $19.71 on the Nasdaq Stock Market.
The Raleigh-based company has had a volatile year because of rumors that Oracle could jump into the open-source Linux market. Jefferies & Co. analyst Katherine Egbert wrote Friday that “our independent checks in the past two weeks indicate that Oracle seems to be close to introducing its own software ’stack.’”
Jefferies cut its price target on Red Hat from $24 to $21…. Source: AP