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Upturn AI SWOT - About
Rackspace Technology Inc (RXT)
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Upturn Advisory Summary
09/17/2025: RXT (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
6 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $1.63
1 Year Target Price $1.63
| 0 | Strong Buy |
| 1 | Buy |
| 4 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -58.9% | Avg. Invested days 21 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 09/17/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 323.14M USD | Price to earnings Ratio - | 1Y Target Price 1.63 |
Price to earnings Ratio - | 1Y Target Price 1.63 | ||
Volume (30-day avg) 6 | Beta 2.06 | 52 Weeks Range 1.00 - 3.41 | Updated Date 09/17/2025 |
52 Weeks Range 1.00 - 3.41 | Updated Date 09/17/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -1.59 |
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 - | When - | Estimate - | Actual - |
Profitability
Profit Margin -13.69% | Operating Margin (TTM) -3.05% |
Management Effectiveness
Return on Assets (TTM) -1.6% | Return on Equity (TTM) -352.76% |
Valuation
Trailing PE - | Forward PE 93.46 | Enterprise Value 3509936913 | Price to Sales(TTM) 0.12 |
Enterprise Value 3509936913 | Price to Sales(TTM) 0.12 | ||
Enterprise Value to Revenue 1.3 | Enterprise Value to EBITDA 36.95 | Shares Outstanding 239360992 | Shares Floating 100098242 |
Shares Outstanding 239360992 | Shares Floating 100098242 | ||
Percent Insiders 4.82 | Percent Institutions 79.24 |
Upturn AI SWOT
Rackspace Technology Inc
Company Overview
History and Background
Rackspace Technology, Inc. was founded in 1998. Initially focused on web hosting, it evolved into managed cloud services, navigating through various acquisitions and strategic shifts.
Core Business Areas
- Multicloud Services: Rackspace provides services to help customers design, build, and operate their cloud environments across various platforms like AWS, Azure, and Google Cloud.
- Security Services: Offers cybersecurity solutions, including threat detection, incident response, and compliance management.
- Data and AI: Provides data analytics and artificial intelligence solutions, helping customers extract insights from their data.
- Application Services: Offers application management, modernization and related services.
Leadership and Structure
The leadership team typically consists of a CEO, CFO, CTO, and other executives heading various business units. The organizational structure is generally hierarchical, with functional departments supporting the core business areas.
Top Products and Market Share
Key Offerings
- Managed Cloud Services: Comprehensive management of cloud infrastructure and applications. Competitors include Accenture, Deloitte, IBM, and smaller MSPs. Market share is fragmented, and Rackspace's specific portion is difficult to pinpoint, but it's estimated to be in single-digit percentages within the broader managed cloud services market.
- Professional Services: Consulting, migration, and modernization services for cloud environments. Competitors include large consulting firms and specialized cloud integrators. Like managed cloud services, market share data for professional services is broad and varies depending on the specific area.
- Security Services: A suite of services designed to improve an organizations cybersecurity posture. Key competitors include: CrowdStrike, Mandiant, and Palo Alto Networks.
Market Dynamics
Industry Overview
The IT services and cloud computing industry is experiencing robust growth, driven by the increasing adoption of cloud technologies, digital transformation initiatives, and the rising complexity of IT infrastructure.
Positioning
Rackspace is positioned as a multicloud solutions provider, helping businesses manage complex cloud environments. It aims to provide expertise and support across various cloud platforms. Its competitive advantage lies in its vendor-agnostic approach and its expertise in managing complex environments.
Total Addressable Market (TAM)
The total addressable market for managed cloud services is estimated to be hundreds of billions of dollars. Rackspace is positioned to capture a portion of this market by specializing in cloud orchestration and management.
Upturn SWOT Analysis
Strengths
- Multicloud expertise
- Strong customer relationships
- Experienced management team
- Comprehensive service portfolio
Weaknesses
- Inconsistent financial performance
- Intense competition
- High debt levels
- Brand confusion
Opportunities
- Growing cloud adoption
- Increasing demand for cybersecurity services
- Expansion into new markets
- Strategic partnerships
Threats
- Intense competition from larger players
- Economic downturn
- Rapid technological changes
- Security breaches
Competitors and Market Share
Key Competitors
- AMZN
- MSFT
- GOOGL
- IBM
- CTSH
- ACN
Competitive Landscape
Rackspace faces intense competition. Its strengths are focused multi-cloud capabilities but limited market share. AMZN, MSFT and GOOGL have resources that far exceed Rackspace's.
Major Acquisitions
Datapipe
- Year: 2017
- Acquisition Price (USD millions): 0
- Strategic Rationale: Enhanced managed services capabilities and expanded customer base.
Growth Trajectory and Initiatives
Historical Growth: Refer to Rackspace's public filings with the SEC for historical growth trends.
Future Projections: Refer to analyst reports and financial news outlets for future projections based on analysts.
Recent Initiatives: Recent initiatives may include new service offerings, partnerships, or strategic acquisitions. Review the company's press releases and investor relations for details.
Summary
Rackspace Technology is a player in the complex and competitive multicloud services market. While it offers valuable expertise and has cultivated strong customer relationships, it faces significant challenges in terms of financial performance, competition, and debt. The company needs to focus on strategic initiatives to drive growth and improve its financial stability and is struggling to compete with much larger cloud providers. Adapting to rapidly changing technologies and efficiently managing multi-cloud environments are critical for Rackspace's success.
Peer Comparison
Sources and Disclaimers
Data Sources:
- SEC Filings
- Analyst Reports
- Company Website
- Financial News Outlets
Disclaimers:
This analysis is for informational purposes only and does not constitute investment advice. Market share data is approximate and may vary depending on the source. Please conduct your own due diligence before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
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 | Website https://www.rackspace.com |
Full time employees 5100 | Website https://www.rackspace.com | ||
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.
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