RXT
RXT 1-star rating from Upturn Advisory

Rackspace Technology Inc (RXT)

Rackspace Technology Inc (RXT) 1-star rating from Upturn Advisory
$1.14
Last Close (24-hour delay)
Profit since last BUY-16.31%
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SELL
SELL since 4 days
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  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
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  • Pass (Skip investing)
Upturn Stock price based on last close icon Stock price based on last close
*as per simulation
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Time period over
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Upturn Advisory Summary

11/14/2025: RXT (1-star) is a SELL. SELL since 4 days. Simulated Profits (-16.31%). Updated daily EoD!

Upturn Star Rating

Upturn 1 star rating for performance

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

2 star rating from financial analysts

6 Analysts rated it

Limited analyst coverage, niche firm, research info may be scarce.

1 Year Target Price $1.55

1 Year Target Price $1.55

Analysts Price Target For last 52 week
$1.55 Target price
52w Low $1
Current$1.14
52w High $3.03

Analysis of Past Performance

Type Stock
Historic Profit -66.32%
Avg. Invested days 25
Today’s Advisory SELL
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/14/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 280.13M USD
Price to earnings Ratio -
1Y Target Price 1.55
Price to earnings Ratio -
1Y Target Price 1.55
Volume (30-day avg) 6
Beta 2.11
52 Weeks Range 1.00 - 3.03
Updated Date 11/16/2025
52 Weeks Range 1.00 - 3.03
Updated Date 11/16/2025
Dividends yield (FY) -
Basic EPS (TTM) -1.05

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date 2025-11-10
When After Market
Estimate -0.05
Actual -0.05

Profitability

Profit Margin -9.27%
Operating Margin (TTM) -3.16%

Management Effectiveness

Return on Assets (TTM) -1.86%
Return on Equity (TTM) -352.76%

Valuation

Trailing PE -
Forward PE 113.64
Enterprise Value 3425695016
Price to Sales(TTM) 0.1
Enterprise Value 3425695016
Price to Sales(TTM) 0.1
Enterprise Value to Revenue 1.27
Enterprise Value to EBITDA 16.08
Shares Outstanding 243592120
Shares Floating 105628851
Shares Outstanding 243592120
Shares Floating 105628851
Percent Insiders 4.18
Percent Institutions 78.03

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

Rackspace Technology Inc

Rackspace Technology Inc(RXT) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo History and Background

Rackspace was founded in 1998. Initially a managed hosting provider, it evolved into a multi-cloud solutions expert. It went public in 2008, was taken private by Apollo Global Management in 2016, and then went public again in 2020 as Rackspace Technology (RXT).

Company business area logo Core Business Areas

  • Multi-Cloud Services: Provides managed services across various cloud platforms, including AWS, Azure, and Google Cloud Platform.
  • Application Services: Offers application modernization, development, and management services.
  • Data Services: Focuses on data analytics, AI, and machine learning solutions.
  • Security Services: Provides comprehensive security solutions for cloud and hybrid environments.

leadership logo Leadership and Structure

The company is led by CEO Amar Maletira. The organizational structure includes distinct business units for each of its core service areas, supported by central functions such as finance, HR, and marketing.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • Rackspace Managed Cloud: Offers managed services for AWS, Azure, and Google Cloud. Market share within the managed cloud services is fragmented, with no single dominant player. Competitors include Accenture, IBM, and smaller MSPs. No available numbers.
  • Rackspace Application Services: Application modernization and management services. Competitors include TCS, Infosys, and Wipro. No available numbers.
  • Rackspace Data Services: Provides data analytics and AI/ML solutions. Competitors include Amazon, Microsoft, and Google. No available numbers.
  • Rackspace Security Services: Offers cloud security solutions. Competitors include CrowdStrike, Palo Alto Networks, and many MSPs. No available numbers.

Market Dynamics

industry overview logo Industry Overview

The cloud services market is experiencing significant growth, driven by digital transformation and the increasing adoption of cloud technologies. Managed services are in high demand as organizations seek expertise in navigating complex cloud environments.

Positioning

Rackspace positions itself as a multi-cloud solutions expert, providing vendor-agnostic services. It competes with larger consulting firms and smaller managed service providers.

Total Addressable Market (TAM)

The global managed cloud services market is expected to reach hundreds of billions of dollars. Rackspace's position in TAM is fragmented with a large number of other competitors with the large cloud providers eating into the market share.

Upturn SWOT Analysis

Strengths

  • Multi-cloud expertise
  • Vendor-agnostic approach
  • Strong brand recognition (legacy)
  • Broad service portfolio

Weaknesses

  • Inconsistent Financial Performance
  • High Debt Levels
  • Negative EPS
  • Limited Differentiation

Opportunities

  • Growing demand for cloud services
  • Expansion into new markets
  • Strategic partnerships
  • Increased focus on security

Threats

  • Intense competition
  • Economic downturn
  • Rapid technological changes
  • Data security breaches

Competitors and Market Share

Key competitor logo Key Competitors

  • IBM (IBM)
  • Accenture (ACN)
  • Tata Consultancy Services (TCS)

Competitive Landscape

Rackspace faces competition from large consulting firms, cloud providers themselves (AWS, Azure, GCP), and smaller MSPs. They need to differentiate on expertise and vendor-agnostic approach.

Growth Trajectory and Initiatives

Historical Growth: Revenue growth has been moderate. Challenges exist in profitability and earnings per share.

Future Projections: Future growth would need to be reviewed by a financial expert. Analyst estimates would need to be consulted and are not available here.

Recent Initiatives: Focus on cloud security and partnerships with major cloud providers.

Summary

Rackspace Technology operates in the competitive cloud managed services market. Rackspace needs to find a way to reach profitability and achieve sustainable growth. The debt on the company books needs to be addressed and needs to capitalize on its multi-cloud expertise. Recent focus on strategic partnerships and cloud security could be beneficial.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Company Filings, Industry Reports, Market Research, SEC.gov

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Market data is subject to change. The AI rating is subjective and should be used with caution.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Rackspace Technology Inc

Exchange NASDAQ
Headquaters San Antonio, TX, United States
IPO Launch date 2020-08-05
CEO -
Sector Technology
Industry Software - Infrastructure
Full time employees 5100
Full time employees 5100

Rackspace Technology, Inc. operates as a cloud and artificial intelligence solutions company in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The company operates in two segments, Public Cloud and Private Cloud. It offers programmatic infrastructure, including hardware and services for compute, network, storage, and data protection services; cloud operating systems; platform-as-a-service; private cloud solutions; and private cloud services, such as managed services, professional services, elastic engineering services, and security services, as well as an email platform for customers and carriers. The company also provides cloud platform, which provides platform-related services comprising cloud strategy and architecture, platform and infrastructure migrations, and modern cloud infrastructure; cloud apps that build and manage applications within a cloud technology stack; cloud security that provides fully-integrated security solutions in security threat assessment and prevention, proactive threat detection and response, rapid remediation, governance, risk and compliance assistance across multiple cloud platforms, and privacy and data protection services, including detailed access restrictions and reporting; and cloud data, which helps accelerate the adoption of modern data solutions enabling business transformation. Rackspace Technology, Inc. was founded in 1998 and is headquartered in San Antonio, Texas.