Clouds Fall Off The RAX
This morning, one of the leading cloud computing hosting companies Rackspace Hosting Inc (NYSE:RAX) is declining sharply after reporting earnings. It seems that revenue came in below consensus and the street is punishing the stock. RAX stock is trading lower by $11.93 to $63.05 a share. Short term traders can watch for intra-day support around the $60.00 level. The best daily chart support level looks to be around the $55.00 area.
This decline in RAX stock will often cause other cloud computing stocks to be weak, this is called trading lower in sympathy. Some leading cloud computing stocks that are trading lower today include VMware Inc (NYSE:VMW), Citrix Systems Inc (NASDAQ:CTXS), Riverbed Technology Inc(NASDAQ:RVBD), and Aruba Networks Inc (NASDAQ:ARUN).