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Upturn AI SWOT - About
Rackspace Technology Inc (RXT)
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Upturn Advisory Summary
06/13/2025: RXT (1-star) is currently NOT-A-BUY. Pass it for now.
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
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $1.59
1 Year Target Price $1.59
| 0 | Strong Buy |
| 1 | Buy |
| 4 | Hold |
| 1 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -52.59% | Avg. Invested days 24 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/13/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 308.61M USD | Price to earnings Ratio - | 1Y Target Price 1.59 |
Price to earnings Ratio - | 1Y Target Price 1.59 | ||
Volume (30-day avg) 6 | Beta 2.04 | 52 Weeks Range 1.00 - 3.41 | Updated Date 06/30/2025 |
52 Weeks Range 1.00 - 3.41 | Updated Date 06/30/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -1.22 |
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 -10.66% | Operating Margin (TTM) -3.58% |
Management Effectiveness
Return on Assets (TTM) -1.89% | Return on Equity (TTM) -352.76% |
Valuation
Trailing PE - | Forward PE 38.61 | Enterprise Value 3475618379 | Price to Sales(TTM) 0.11 |
Enterprise Value 3475618379 | Price to Sales(TTM) 0.11 | ||
Enterprise Value to Revenue 1.28 | Enterprise Value to EBITDA 25.5 | Shares Outstanding 237388992 | Shares Floating 98326404 |
Shares Outstanding 237388992 | Shares Floating 98326404 | ||
Percent Insiders 3.78 | Percent Institutions 80.5 |
Analyst Ratings
Rating 3 | Target Price 1.59 | Buy 1 | Strong Buy - |
Buy 1 | Strong Buy - | ||
Hold 4 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Rackspace Technology Inc
Company Overview
History and Background
Rackspace Technology, founded in 1998, initially offered managed hosting services. Over time, it expanded to cloud computing, multi-cloud management, and other IT solutions. It went public in 2008, was taken private by Apollo Global Management in 2016, and then re-listed on the Nasdaq in 2020.
Core Business Areas
- Multicloud Services: Provides managed services across various cloud platforms like AWS, Azure, and Google Cloud Platform, including cloud migration, application modernization, and managed security.
- Application Services: Offers services related to application development, management, and modernization, focusing on improving application performance and scalability.
- Data Services: Focuses on data analytics, artificial intelligence, and machine learning solutions, helping businesses extract insights from their data.
- Security Services: Offers security solutions and consulting services for Cloud infrastructure.
Leadership and Structure
The leadership team includes Amar Maletira (CEO). The organizational structure is based on business lines focused on multicloud services, application services, and data services.
Top Products and Market Share
Key Offerings
- Managed Cloud Services (AWS, Azure, GCP): Offers management and optimization of cloud infrastructure on major platforms. Competitors include Accenture, Deloitte, IBM, and other managed service providers. Market share data not publicly available.
- Professional Services: Consulting and implementation services for cloud adoption and modernization. Competitors include Accenture, Deloitte, IBM, and other consulting firms. Market share data not publicly available.
- Rackspace Fabric: A cloud platform for infrastructure and application management. Competitors are various Cloud Management Platforms (CMP) offered by companies such as VMware, Flexera, and CloudBolt Software. Market Share data not publicly available.
Market Dynamics
Industry Overview
The managed cloud services market is growing rapidly, driven by increasing adoption of cloud computing and the need for specialized expertise in managing complex cloud environments. The market is competitive with many players.
Positioning
Rackspace Technology is positioned as a multi-cloud managed services provider, offering expertise across multiple cloud platforms. Its competitive advantages include its vendor-neutral approach and experience in managing complex cloud environments.
Total Addressable Market (TAM)
The TAM for managed cloud services is estimated to be in the hundreds of billions of dollars globally. Rackspace Technology is positioned to capture a portion of this TAM through its multi-cloud strategy. The exact size of TAM varies based on the scope of services included in the estimate.
Upturn SWOT Analysis
Strengths
- Multi-cloud expertise
- Vendor-neutral approach
- Strong brand recognition
- Experienced management team
Weaknesses
- Intense competition
- Dependence on cloud platform providers
- Profitability challenges
- Debt Load
Opportunities
- Growing demand for managed cloud services
- Expansion into new geographic markets
- Development of new service offerings
- Acquisitions of complementary businesses
Threats
- Price competition
- Economic downturn
- Changes in cloud platform pricing
- Emergence of new competitors
Competitors and Market Share
Key Competitors
- ACN
- IBM
- DXC
- GDDY
Competitive Landscape
Rackspace Technology competes with large consulting firms, IT service providers, and cloud platform providers. Its advantages include its multi-cloud expertise and vendor-neutral approach. Its disadvantages include its smaller size and limited financial resources compared to some of its competitors.
Major Acquisitions
Datapipe
- Year: 2017
- Acquisition Price (USD millions): 400
- Strategic Rationale: Expanded Rackspace's managed services capabilities and added expertise in regulated industries.
RelationEdge
- Year: 2019
- Acquisition Price (USD millions): 50
- Strategic Rationale: Strengthened Rackspace's professional services and customer relationship management (CRM) capabilities.
Growth Trajectory and Initiatives
Historical Growth: Rackspace Technology's revenue growth has been inconsistent, reflecting the competitive landscape and shifts in the managed cloud services market.
Future Projections: Analyst estimates for Rackspace Technology's future growth vary, but generally project modest revenue growth and improved profitability. However, these are subject to market conditions and execution risks.
Recent Initiatives: Recent initiatives include expanding partnerships with cloud platform providers, launching new service offerings, and focusing on operational efficiency.
Summary
Rackspace Technology is a multi-cloud managed services provider with a strong brand and expertise in managing complex cloud environments. However, it faces intense competition, profitability challenges, and dependence on cloud platform providers. While the company has opportunities to grow in the expanding managed cloud services market, it also faces threats from price competition and economic downturns.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company SEC Filings (10-K, 10-Q)
- Analyst Reports
- Industry Publications
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice. Market share figures are estimates and may vary. Financial data is based on the latest available information but may be subject to change.
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 | President, CEO & Director Mr. Amar Maletira | ||
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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