Rackspace Hosting (NYSE:RAX)

Still highly overvalued. I see their 3 to 5 year growth rate at around 15% rather than the 27.73% analysts currently have(as of 5/14/13). Regression to the mean in process. AMZN and MSFT are competitors.

Zacks Rank 5-StrongSell, Recommend UnderPerform, Industry Rank 181 / 265, Avg target of 19 analysts 47.30
- Short Interest Ratio: 11.10 %
- Est Revision Ratio: Up 0 vs 59 Down

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 Don't expect him to get outdated or blindsighted as new technologies come online.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

I think the market overreacted just a tad yesterday

Happy customer. Buying on dip.

Stock is oversold, will bounce back in the future

will reverse bad 4mo. performance

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 yield
INTERNET 97 7 A e pe62

Rackspace has been beaten down with its fellow cloud stock brethren, but I suspect that the takeover speculation in the datacenter industry will drive the price higher for a while.

discount pricing on 'cloud king'. new technology platform that make their service even more valuable, scalable, & profitable.

Solid growth prospects relative to its value

I gave this the green thumb on today's Investor Beat.

RAX will provide customer service to those dissatisfied w amzn, & both will grow (as will the cloud) in years to come

The iCloud is just in its early stages of development and RAX is a top contender for the growing business.

This is a big time candidate for a takeover.

leader in industry; fanatical support is nearly inimitable; long-term focus with strong leadership