Rackspace Shares Double After Partnership with Palantir for AI Deployment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9 hours ago
0mins
Should l Buy RXT?
Source: stocktwits
- Stock Surge: Rackspace Technology (RXT) shares surged 157% in pre-market trading on Wednesday, primarily due to its partnership with Palantir Technologies (PLTR), which is expected to significantly shorten AI deployment timelines and enhance the company's competitive position.
- 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.
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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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- Sector Dynamics: Energy stocks rose by 1.6% on Wednesday, reflecting optimistic expectations for energy demand, while real estate stocks fell by 1.2% on Tuesday, highlighting challenges faced by the sector amid market uncertainties.
- Durable Goods Orders: U.S. durable goods orders fell by 1.4% month-over-month in December, contrasting sharply with a revised 5.4% gain in November, suggesting a potential slowdown in economic growth that could impact future consumer and investment decisions.
- Commodity Markets: Oil prices increased by 4.2% to $64.93 per barrel, gold rose by 2.3% to $5,020.40, and silver climbed 6.2% to $78.120, indicating a rising demand for commodities as investors seek safe-haven assets.
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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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- 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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- Sector Dynamics: Energy shares rose by 1.3% on Wednesday, while real estate stocks fell by 0.8%, reflecting a divergence in performance across different sectors.
- Company Earnings: Analog Devices Inc reported first-quarter earnings of $2.46 per share, exceeding analyst expectations of $2.31, with quarterly sales of $3.16 billion also surpassing the forecast of $3.117 billion, showcasing the company's strong financial performance.
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See More
Rackspace Shares Double After Partnership with Palantir for AI Deployment
- Stock Surge: Rackspace Technology (RXT) shares surged 157% in pre-market trading on Wednesday, primarily due to its partnership with Palantir Technologies (PLTR), which is expected to significantly shorten AI deployment timelines and enhance the company's competitive position.
- 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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S&P Software Index Decline: The S&P Software Index has experienced a significant decline of 22% this year due to the impact of AI.
Software Loan Price Stability: Despite the drop in the software index, the price of software loans has only decreased by approximately 3%.
See More
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- Market Performance: U.S. stocks broadly rose on Wednesday, with the Nasdaq Composite gaining over 1% and the Dow up 0.57% to close at 49,814.98, indicating positive market sentiment and increased investor confidence.
- Sector Dynamics: Energy stocks rose by 1.6% on Wednesday, reflecting optimistic expectations for energy demand, while real estate stocks fell by 1.2% on Tuesday, highlighting challenges faced by the sector amid market uncertainties.
- Durable Goods Orders: U.S. durable goods orders fell by 1.4% month-over-month in December, contrasting sharply with a revised 5.4% gain in November, suggesting a potential slowdown in economic growth that could impact future consumer and investment decisions.
- Commodity Markets: Oil prices increased by 4.2% to $64.93 per barrel, gold rose by 2.3% to $5,020.40, and silver climbed 6.2% to $78.120, indicating a rising demand for commodities as investors seek safe-haven assets.
See More
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- Strategic Partnership: Palantir has formed a partnership with Rackspace to accelerate the deployment of its analytical and AI-driven software, enabling customers to implement AI use cases in production within weeks instead of months or years through Rackspace's governed operating model.
- 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.
- Optimistic Market Outlook: Mizuho upgraded Palantir from Neutral to Outperform, reiterating a $195 price target, citing the growth of Palantir's U.S. commercial business and the urgency for internal data integration, suggesting a favorable risk-reward scenario.
See More
Palantir Partners with Rackspace to Enhance AI Deployment
- Strategic Partnership: Palantir has formed a strategic partnership with Rackspace to accelerate the implementation of AI solutions for enterprises, which is expected to drive significant business outcomes and enhance market competitiveness.
- 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.
- Stock Performance Review: Palantir shares rose 2.71% to $136.63 during Wednesday's premarket trading, although they remain below both the 20-day and 100-day simple moving averages, indicating market attention on its long-term potential.
See More
U.S. Stocks Rise in Morning Trading, Dow Up Approximately 100 Points
- Market Performance: U.S. stocks opened higher on Wednesday, with the Dow Jones index gaining approximately 100 points, or 0.21%, reaching 49,637.82, indicating positive market sentiment.
- Sector Dynamics: Energy shares rose by 1.3% on Wednesday, while real estate stocks fell by 0.8%, reflecting a divergence in performance across different sectors.
- Company Earnings: Analog Devices Inc reported first-quarter earnings of $2.46 per share, exceeding analyst expectations of $2.31, with quarterly sales of $3.16 billion also surpassing the forecast of $3.117 billion, showcasing the company's strong financial performance.
- Commodity Markets: On Wednesday, oil prices increased by 2.9% to $64.13 per barrel, gold rose by 1.8% to $4,994.30, and silver climbed 5% to $77.235, indicating heightened activity in the commodities market.
See More
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- Stock Surge: Rackspace Technology (RXT) shares surged 157% in pre-market trading on Wednesday, primarily due to its partnership with Palantir Technologies (PLTR), which is expected to significantly shorten AI deployment timelines and enhance the company's competitive position.
- 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
Morgan Stanley Cautions About Increasing Risks in Software Lending
S&P Software Index Decline: The S&P Software Index has experienced a significant decline of 22% this year due to the impact of AI.
Software Loan Price Stability: Despite the drop in the software index, the price of software loans has only decreased by approximately 3%.
See More
