+ Watch RAX
on My Watchlist
I do not like RAX mostly because of the price I paid for it. I bought it at $73 per share on MF's recommendation. It is at $32 now and its price has ranged between $32 and $35 for months. I don't think they can compete because they are priced too high against their competition.
Competition too fierce
Heightened competition from Google and Amazon, and consumers will utilize the most cost effective options.
I see this stock dropping another 3 - 4%, then I'll buy. Mgmt is changing, with recent big company contract acquisitions, I see a good potential for some serious growth. Provided of course, the new mgmt. team is in place with about 3 - 6 months of experience. RAX is not like Ruckus, RAX will grow again and come to dominate the industry.
Loss of CEO/Founder with very ominous explanation does not bode well
Seem to have a solid product, and cloud hosting is the way of the future. I don't want to run my server out of my home. Who does? The flexibility of cloud services could lead to good returns in the years to come.
You need to use the cloud to exist in the digital world today.
Currently undervalued but in a market that is growing fast
Cloud is the new black. And while everyone will eventually move into the cloud, so far, Rackspace has stayed ahead of the curve technically and their support staff really is amazing.
long time leader of web hosting
Strong growth which should continue despite increased competition and very attractive valuation compared to historical levels when measured on a TEV/EBITDA basis.
A Fool recommendation that has dropped 50% since recommended, sounds like a come back is on the way :)
This is a great business that is just getting hammered by Wall Street. The drop this past week is truly a GIFT to long-term investors.- The company's Fanatical Support® (i.e. fanatical focus on customer service) is a bigger deal than most give it credit for. They do this to increase stickiness and induce switching costs - both of which are strong forms of a competitive advantage.- Rackspace's CEO, Lanham Napier is a visionary, but he is also very good at adapting to changes in the industry. Don't expect him to get outdated or blindsighted as new technologies come online.THE OPENSTACK OPERATING SYSTEM IS THE KEY (http://www.rackspace.com/cloud/openstack/). It's going to take time and patience to convert businesses and users to use OpenStack. That uncertainty is what is holding the stock back right now. But if they establish a dedicated user base for developing public/private cloud infrastructure, they'll have recurring revenues for years into the future.Even after the drop, RAX is still trading at a forward P/E of around 30. But don't let the pricetag fool you: this is a buy right now. There is plenty of space to fly in this cloud.
Oversold.Cloud computing.Profitable company
Happy customer. Buying on dip.
Their leadership in innovation and service will pull them from the current slump,
Iclouding is the future
IBD EPS, RS, SPROE, Acc ratings plus P/E and div yieldINTERNET 97 7 A e pe62
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