RAX: Rackspace slips ahead of Q2 report; Canaccord is downbeat

Rackspace slips ahead of Q2 report; Canaccord is downbeat • 12:07 PM

• Canaccord's Greg Miller: "We believe that the transition from legacy [Web hosting] platform to OpenStack remains challenging just as the cloud infrastructure market becomes increasingly competitive."
• Miller thinks more OpenStack price cuts are likely, and doesn't believe consensus growth forecasts "can be easily achieved without significant margin drag."
• Rackspace (RAX -2.2%) plunged following its Q4 and Q1 reports. Investors are nervous about the potential loss of hosting clients to 3rd-party cloud infrastructure platforms such Amazon Web Services and Windows Azure, as well as the aggressive pricing of said firms and Rackspace's own price cuts.
• Wells Fargo and Cowen upgraded Rackspace in June.
• Shares -39% YTD. Q2 results arrive tomorrow.

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RAX price at time of publication: $45.20. Check RAX price now »

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Focus Articles on RAX

• Can IBM Save OpenStack? by Dana Blankenhorn
• Bear Of The Day: Rackspace Hosting by Zacks Investment Research
• Rackspace - As Long-Term Growth Story Remains Intact, Shares Should Find Support by The Value Investor

Press Releases on RAX

• Mazda Chooses Rackspace to Take the Driver's Seat with Its Web and Application Hosting (Business Wire)
• Rackspace to Host Conference Call for Second Quarter 2013 Results (Business Wire)
• Rackspace Appoints Rick Jackson as Chief Marketing Officer (Business Wire)

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StockTalk on RAX: RAX StockTalk | Twitter RAX | Twitter $RAX | RAX Instablogs

Recent Market Alerts on RAX: All currents | Earnings | Dividends | M&A | On the move

Transcripts on RAX

• Rackspace Hosting Management Discusses Q1 2013 Results - Earnings Call Transcript
• Rackspace Hosting, Inc. - Shareholder/Analyst Call
• Rackspace Hosting's Management Presents at Deutsche Bank's DbAccess 21st Annual Media and Telecom Conference (Transcript)

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