Actionable news
All posts from Actionable news
Actionable news in RAX: RACKSPACE HOSTING Inc,

Rackspace Getting Squeezed by Competition Ahead of Earnings


Cloud computing specialist Rackspace Hosting (RAX - Get Report) will report third-quarter fiscal 2015 earnings results after the closing bell Monday. Owing to increased competition from the likes of Alphabet (GOOGL - Get Report) -- better known as Google -- and Amazon (AMZN - Get Report) , Rackspace is seemingly running out of room.

Rackspace's struggles to grow revenue and profits were highlighted in our last discussion on Aug. 7, when we advised selling the stock. At the time, the shares traded at around $32. Since that day, they've fallen almost 20% to around $26. All told, RAX shares have plummeted some 42% so far in 2015 and 27% over the past 12 months. If you've been holding RAX stock for the past three years, you're likely in the hole around 60%.

And here's the thing: Even after the stock's decline, the shares -- trading at a...