Rackspace Technology surges amid strong market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2024
0mins
Should l Buy RXT?
Source: Coinmarketcap
Rackspace Technology Inc. saw a significant price increase of 141.05% in pre-market trading as it crossed above its 5-day SMA, indicating strong bullish momentum.
The surge in Rackspace's stock price comes amid broad market strength, with the Nasdaq-100 and S&P 500 both showing gains of 0.42% and 0.34%, respectively. This positive market environment has likely contributed to investor confidence in Rackspace's future performance.
Analysts suggest that the upward movement could attract further investment interest, potentially leading to sustained growth for Rackspace Technology in the coming sessions.
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Analyst Views on RXT
Wall Street analysts forecast RXT stock price to rise
3 Analyst Rating
0 Buy
3 Hold
0 Sell
Hold
Current: 0.419
Low
1.30
Averages
1.48
High
1.75
Current: 0.419
Low
1.30
Averages
1.48
High
1.75
About RXT
Rackspace Technology, Inc. is an end-to-end hybrid, hybrid cloud, and artificial intelligence (AI) solutions company. The Company designs, builds, and operates its customers’ cloud environments across all technology platforms, irrespective of technology stack or deployment model. The Company operates through two segments. Its Public Cloud segment is a service-centric, capital-light model providing value-added cloud solutions through managed services, elastic engineering and professional services offerings for customer environments hosted on the Amazon Web Services (AWS), Microsoft Azure and Google Cloud public cloud platforms. Its Private Cloud segment is a technology-forward, capital-intensive model providing managed service offerings for customer environments hosted in one of its data centers as well as in those owned by customers or by third parties. Private Cloud product portfolio includes Programmatic Infrastructure, Cloud Operating Systems, Platform-as-a-Service, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Price Surge: Rackspace shares surged over 150% in early market action, while Palantir's stock increased by 2.5%, indicating a positive market reaction to the partnership, which may enhance Palantir's market attractiveness.
- Data Migration and Implementation: Rackspace will serve as Palantir's partner in data migration and global implementation, particularly critical for regulated industries, ensuring AI deployments meet strict data sovereignty and compliance requirements, thereby enhancing customer trust.
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See More
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- Team Expansion Plan: Rackspace plans to scale its team of Palantir-trained engineers from 30 to over 250 within the next year, significantly enhancing its capacity to support clients in data migration and implementation services.
- Analyst Upgrade: Mizuho analyst Gregg Moskowitz upgraded Palantir's rating from Neutral to Outperform, setting a price target of $195, reflecting confidence in the company's future growth prospects.
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See More
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- Strategic Partnership: Under the agreement, Palantir's software will operate within Rackspace's Private Cloud and U.K. Sovereign data centers, which not only enhances Rackspace's technical capabilities but also provides customers with more secure cloud services.
- Engineer Training Initiative: Rackspace currently has 30 engineers trained on Palantir technologies and plans to expand this number to over 250 in the next year, aiming to improve data migration and complex deployment capabilities, thereby accelerating AI implementation for clients.
- Industry Impact: Rackspace CEO Gajen Kandiah stated that this partnership will help customers accelerate time to value in regulated industries, emphasizing the importance of governance and security, which further solidifies Rackspace's leadership in the cloud services market.
See More
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See More
