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Wednesday, Nov 7
2012, 2:14 PM
Richly-valued Rackspace (RAX -5.4%) is selling off after delivering a decent (but not...
Richly-valued Rackspace (RAX -5.4%) is selling off after delivering a decent (but not spectacular) Q3 report (I, II) - shares are still up strongly from July levels. Rackspace noted on its earnings call it's seeing healthy early interest in its OpenStack cloud infrastructure solutions, whose scalability help Rackspace better compete with Amazon Web Services (AWS), and that it has led to "conversations with large enterprise customers that we just weren't having a year ago." Rackspace is hoping its service quality and user control will help counter Amazon's pricing edge.