Why is Rackspace stock falling today?
Market makers jumped to the conclusion that Rackspace's earnings growth is slowing down, and that's why the stock is falling today. Image source: Getty Images.
What is Rackspace and what does it do?
"Rackspace provides standardized but customizable software based services to move applications to and then manage them on the cloud," Horan wrote in a research note to investors.
How did Rackspace technology perform in the fourth quarter?
“The fourth quarter was a strong conclusion to the year, and Rackspace Technology continued to execute on its mission to lead the cloud services market as a best-in-class, pure-play cloud solutions company. It was a record quarter for Bookings, and we met or exceeded all of our financial targets while driving strong cash flow from operations.”
How has RXT stock performed over the last 6 months?
The RXT stock has declined 5.44% over the past year, and has reduced -2.17% in the past week. Over the past six months, RXT stock has decreased by -27.52%, and over the last three months, it has decreased by -8.81%.
How much sales growth will Lovesac have in 2021?
What is the long view when buying stocks?
What is a small cap company?
About this website
Is Rackspace Technology a good stock to buy?
Rackspace Technology has received a consensus rating of Hold. The company's average rating score is 2.44, and is based on 4 buy ratings, 5 hold ratings, and no sell ratings.
What happened to Rackspace?
Rackspace will terminate roughly 10% of its workforce and rehire a majority of those positions in foreign countries, the cloud computing company disclosed in a stock filing Thursday. Rackspace employs roughly 7,000 people across the globe, with a sizable portion in its Windcrest headquarters.
Will Rackspace stock go up?
Stock Price Forecast The 9 analysts offering 12-month price forecasts for Rackspace Technology Inc have a median target of 11.00, with a high estimate of 16.00 and a low estimate of 9.00. The median estimate represents a +69.88% increase from the last price of 6.48.
Is Rackspace being sold?
Rackspace has ended weeks of speculation about its future as a publicly traded company by confirming it will be acquired by private equity house Apollo Global Management for $4.3bn.
Is Rackspace owned by Amazon?
Other key executives will receive similar compensation. Rackspace was acquired in 2016 by private equity giant Apollo Global Management for $4.3 billion. It came back to the public market last August. Rackspace is a key partner of Amazon's AWS, the Internet giant's largest profit driver.
Who is Rackspace owned by?
ApolloRackspace leases server space and helps corporations store and access data in the cloud. It was acquired by Apollo in a $4.3 billion leveraged buyout in 2016, and was listed in the stock market earlier this month.
Why is RXT dropping?
Shares of Rackspace Technology RXT +3.47% were plunging Friday after analysts at Oppenheimer downgraded the stock due to concerns over margin pressures and high debt.
Is RXT a good investment?
Out of 10 analysts, 1 (10%) are recommending RXT as a Strong Buy, 4 (40%) are recommending RXT as a Buy, 5 (50%) are recommending RXT as a Hold, 0 (0%) are recommending RXT as a Sell, and 0 (0%) are recommending RXT as a Strong Sell. What is RXT's earnings growth forecast for 2022-2024?
Is Rackspace a good company to work for?
80% of employees at Rackspace Technology™ say it is a great place to work compared to 57% of employees at a typical U.S.-based company. Source: Great Place to Work® 2021 Global Employee Engagement Study.
Is Rackspace technology a public company?
The company returned to the public market in an August 2020 initial public offering at $21 a share, at about the same valuation where the company went private. As of the close of Tuesday's regular session, Rackspace shares were selling for $8.63, down about 59% from the IPO price.
Where is Rackspace headquarters?
Windcrest, TXRackspace Technology / HeadquartersWindcrest is a city in Bexar County, Texas, United States. Its population was 5,865 at the 2020 census. It is part of the San Antonio metropolitan area. Wikipedia
What happened
Shares of Rackspace Technology ( RXT -3.64% ) fell Friday morning after the company reported its fourth-quarter results Thursday. Investors appear disappointed with the company's guidance for 2021.
So what
Rackspace reported non-GAAP earnings per share (EPS) of $0.26, which beat analysts' consensus EPS estimate of $0.23. Additionally, the company's fourth-quarter sales of $716 million easily outpaced Wall Street's estimate of $702 million.
Now what
Rackspace's management anticipates that its 2021 revenue will be $3 billion at the midpoint of the guidance range, up 11% from 2020. That outlook, coupled with the company's forecast earnings growth, seems like it should have been enough to make investors optimistic about Rackspace's upcoming year. But investors can be unpredictable.
What happened
Shares of Rackspace Technology ( RXT -3.64% ) dipped 18.9% in May, according to data from S&P Global Market Intelligence. The cloud-computing stock fell after the company published its first-quarter results.
NASDAQ: RXT
Rackspace published Q1 results on May 10, and shares pulled back precipitously following the release despite the company posting results that came in ahead of the average market targets.
So what
Rackspace's sales were up roughly 11% year over year, set a new record in the first quarter, and topped the market's targets, but it doesn't looks like growth is expected to accelerate beyond that rate this year, and the earnings outlook is weaker than some analysts anticipated.
Now what
Rackspace Technology stock has regained some ground early in June's trading. The company's share price is up roughly 3.3% in the month so far.
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How much sales growth will Lovesac have in 2021?
In the company’s fiscal 2021 (which ended on Jan. 31), it reported 37% net sales growth and 53% comparable sales growth. Lovesac also reported a strong surge in online shopping for its products in its fiscal 2021, with internet sales spiking 171% from fiscal 2020.
What is the long view when buying stocks?
Taking the long view when you buy stocks. When you invest your hard-earned money into the stock market, one of the most crucial factors to keep in mind before you buy any company is that particular investment’s ability to deliver consistent growth and sustain investor returns over the long term.
What is a small cap company?
Generally speaking, small-cap stocks are companies with market capitalizations that fall in the $300 million to $2 billion range.
The multicloud service provider got a bullish initiation from Wall Street
Evan is a Senior Technology Analyst at The Motley Fool. He was previously a Senior Trading Specialist at Charles Schwab, and worked briefly at Tesla. Evan graduated from the University of Texas at Austin, and is a CFA charterholder.
What happened
Shares of Rackspace Technology ( NASDAQ:RXT) have popped today, up by 12% as of 12:30 p.m. EST, after the Oppenheimer initiated coverage on the stock with an outperform rating alongside a price target of $28, which represents over 40% upside from yesterday's close. The company separately said that it was refinancing some debt.
So what
Analyst Timothy Horan is bullish on Rackspace as a pure-play way to invest in enterprise public cloud adoption. The technology specialist offers a multicloud service that supports all three of the major public cloud infrastructure providers.
Now what
In a regulatory filing, Rackspace said it plans to commence a new $2.2 billion secured term loan facility. The company intends to use the proceeds to pay down an existing term loan facility.
What is Rackspace's market share?
Even worse is Rackspace's market share in the Domain Name System (DNS) market, which allows developers and businesses a way to route end users to apps, taking web addresses and turning them into numeric IP addresses. In this fast-growing market, Rackspace has just 2% of the market, while Amazon Route 53, part of AWS, ...
Is Rackspace a losing company?
Rackspace is waging a losing battle against the likes of Amazon, Google and Microsoft. This post is part of TheStreet's ongoing search to find the Worst Stock in the World. Rackspace is waging a losing battle against the likes of Amazon, Google and Microsoft.
Is Rackspace a public cloud?
The San Antonio-based Rackspace competes against cloud computing companies, but it's really more of a hosting company with a hybrid model that lets businesses run their software on either a private or a public cloud.
Is Rackspace going up against IBM?
In the hybrid space, Rackspace is going up against IBM, as well as Amazon, with the EC2 portion of Amazon Web Services. Amazon continues to cut prices, having recently cut them for the 51st time (on all AWS aspects) in early January. That day, Rackspace saw its shares drop 8%, one of the largest single-day drops in recent memory.
How much sales growth will Lovesac have in 2021?
In the company’s fiscal 2021 (which ended on Jan. 31), it reported 37% net sales growth and 53% comparable sales growth. Lovesac also reported a strong surge in online shopping for its products in its fiscal 2021, with internet sales spiking 171% from fiscal 2020.
What is the long view when buying stocks?
Taking the long view when you buy stocks. When you invest your hard-earned money into the stock market, one of the most crucial factors to keep in mind before you buy any company is that particular investment’s ability to deliver consistent growth and sustain investor returns over the long term.
What is a small cap company?
Generally speaking, small-cap stocks are companies with market capitalizations that fall in the $300 million to $2 billion range.
