RAX

Rackspace Hosting Inc.

TMT


Presented:11/26/2013
Price:$37.14
Cap:$5.19B
Current Price:$31.99
Cap:$4.04B

Presented

Date11/26/2013
Price$37.14
Market Cap$5.19B
Ent Value$5.00B
P/E Ratio65.35x
Book Value$7.57
Div YieldN/A
Shares O/S139.81M
Ave Daily Vol2,020,000
Short Int11.23%

Current

Price$31.99
Market Cap$4.04B
Rackspace Hosting, Inc., through its subsidiaries, provides cloud computing services, managing Web-based IT systems for small and medium-sized businesses, and large enterprises worldwide. Its service offering combines hosting on dedicated hardware and on multi-tenant pools of virtualized hardware in a way that suits each customer’s requirements. The company’s public cloud services refer to pooled computing resources delivered on-demand over the Internet. It offers cloud servers for computing; cloud sites for Website hosting; cloud block storage and cloud files for storage; cloud databases for hosting; cloud backup for file protection; cloud load balancers for traffic management; cloud monitoring for infrastructure control; cloud DNS for domain management; cloud networks for security enhancement; and cloud applications, including email, collaboration, and file back-ups. Rackspace Hosting’s dedicated cloud services comprise customer management portal and other management tools for managing the data center, network, hardware devices, and operating system software; and private cloud services include a pool of computing resources for a particular customer. It also provides hybrid hosting, which enables customers to employ a combination of dedicated and pooled resources and to manage them through its RackConnect service. The company sells its service suite through direct sales teams, third party channel partners, and online ordering. Rackspace Hosting, Inc. has a strategic agreement with 10gen to deliver cloud platform for MongoDB, a NoSQL document database. The company was founded in 1998 and is headquartered in San Antonio, Texas.

Highlights

The presenter is short shares of Rackspace on pricing declines in both the company’s managed hosting and cloud hosting segments. With managed hosting perceived as having relatively limited prospects, the company has focused a great deal of attention on the cloud opportunity. But competition with Amazon Web Services (AWS, a division of AMZN) is proving extremely challenging.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.