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Upturn AI SWOT - About
Rackspace Technology Inc (RXT)
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Upturn Advisory Summary
03/03/2025: RXT (1-star) is a SELL. SELL since 2 days. Profits (-17.13%). Updated daily EoD!
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -63.27% | Avg. Invested days 22 | Today’s Advisory SELL |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/03/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 401.05M USD | Price to earnings Ratio - | 1Y Target Price 2.95 |
Price to earnings Ratio - | 1Y Target Price 2.95 | ||
Volume (30-day avg) 932721 | Beta 2.06 | 52 Weeks Range 1.51 - 3.41 | Updated Date 04/1/2025 |
52 Weeks Range 1.51 - 3.41 | Updated Date 04/1/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -3.91 |
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 2025-03-10 | When Before Market | Estimate -0.0383 | Actual -0.02 |
Profitability
Profit Margin -31.35% | Operating Margin (TTM) -2.7% |
Management Effectiveness
Return on Assets (TTM) -1.96% | Return on Equity (TTM) -352.76% |
Valuation
Trailing PE - | Forward PE 38.61 | Enterprise Value 3538948287 | Price to Sales(TTM) 0.15 |
Enterprise Value 3538948287 | Price to Sales(TTM) 0.15 | ||
Enterprise Value to Revenue 1.29 | Enterprise Value to EBITDA -18.94 | Shares Outstanding 237307008 | Shares Floating 89108658 |
Shares Outstanding 237307008 | Shares Floating 89108658 | ||
Percent Insiders 2.08 | Percent Institutions 80.25 |
Analyst Ratings
Rating 3 | Target Price 2.89 | 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 was founded in 1998. Initially focused on managed hosting, it expanded into cloud computing, becoming a key player in the early cloud market. In 2016, it was taken private by Apollo Global Management and later relisted in 2020.
Core Business Areas
- Multicloud Services: Provides managed services across various cloud platforms, including AWS, Azure, and Google Cloud Platform. Helps businesses with cloud migration, optimization, and security.
- Application Services: Offers application management, modernization, and development services, including DevOps, database management, and application testing.
- Data Services: Focuses on data analytics, data warehousing, and data governance solutions, helping clients leverage data for business insights.
- Security Services: Comprehensive suite of security solutions, encompassing threat detection, incident response, and compliance management. Offers proactive protection and continuous security monitoring.
Leadership and Structure
Amar Maletira serves as CEO. The company has a traditional hierarchical structure with departments focused on sales, marketing, engineering, and finance.
Top Products and Market Share
Key Offerings
- Managed Cloud: Rackspace's core offering provides management and support for cloud infrastructure and applications, focusing on expertise across multiple cloud providers (AWS, Azure, GCP). Competitors include Accenture, Deloitte, and other managed service providers. Specific market share data difficult to ascertain as it's fragmented within the larger cloud services market. Focus is on high-value, complex managed services.
- Professional Services: Includes consulting and implementation services related to cloud migration, modernization, and optimization. Competitors include large consulting firms (Accenture, Capgemini). Revenue contribution not explicitly stated in reports, however the Professional Services group contributes 36% to the overall revenue, per the Q1 2024 Earning Call Presentation
- Security Services: Offers security solutions such as threat detection, incident response, and compliance services, safeguarding cloud environments from cyber threats. Competitors include MSPs such as AT&T, IBM, and Secureworks.
Market Dynamics
Industry Overview
The cloud computing industry is experiencing robust growth driven by digital transformation initiatives, increasing adoption of multicloud environments, and the demand for specialized managed services. Competition is fierce, with numerous providers vying for market share.
Positioning
Rackspace positions itself as a multicloud solutions expert, differentiating itself by providing vendor-agnostic managed services across various cloud platforms. It focuses on complex cloud environments and specialized solutions.
Total Addressable Market (TAM)
The global managed cloud services market is estimated to reach hundreds of billions of dollars. Rackspace is positioned to capture a portion of this TAM by offering specialized, multicloud solutions, focusing on businesses seeking expertise in managing complex cloud environments.
Upturn SWOT Analysis
Strengths
- Multicloud expertise
- Strong partner ecosystem (AWS, Azure, GCP)
- Focus on managed services
- Experienced in complex cloud environments
Weaknesses
- High Debt
- Competition from larger players
- Relatively smaller scale compared to hyperscalers
- Vulnerability in overall IT spending slowdown
Opportunities
- Growing demand for multicloud solutions
- Expansion into emerging technologies (AI, IoT)
- Strategic acquisitions to expand capabilities
- Increased focus on security services
Threats
- Intense competition and pricing pressures
- Economic downturn affecting IT spending
- Rapid technological changes
- Security breaches and data privacy concerns
Competitors and Market Share
Key Competitors
- IBM (IBM)
- Accenture (ACN)
- Cognizant (CTSH)
Competitive Landscape
Rackspace faces strong competition from larger, more diversified IT service providers. Its competitive advantage lies in its multicloud expertise and focus on specialized managed services.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Rackspace experienced strong growth during the early cloud era but has faced challenges in recent years due to increased competition and strategic missteps. Revenue declined YOY in Q1 2024.
Future Projections: Analysts' growth projections for Rackspace are mixed. Focus is on strategic initiatives to return to growth. Difficult to project in the context of the private equity takeover.
Recent Initiatives: Restructuring and optimization plans, new product launches in security and multicloud management, and expanding partnerships with major cloud providers are recent initiatives.
Summary
Rackspace is struggling amidst increased competition and high debt levels. Despite expertise in multicloud solutions, revenue growth has been inconsistent. Strategic initiatives are underway, but Rackspace must address its financial challenges and adapt to evolving market dynamics. Rackspace has to reduce its debt and develop innovative new products for the cloud industry to get back on track.
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Sources and Disclaimers
Data Sources:
- Rackspace Technology Inc. Financial Reports
- Industry Analysis Reports
- Market Research Data
- Company Investor Relations
Disclaimers:
The data and analysis provided are based on available information and are subject to change. This is not financial advice, and investors should conduct their own due diligence.
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 multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. The company operates through Public Cloud and Private Cloud segments. It offers programmatic infrastructure, hardware and services for compute, network, storage, and data protection services; cloud operating systems, operates a software defined data center; a 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, provides platform-related services such as cloud strategy and architecture, platform and infrastructure migrations, and modern cloud infrastructure; cloud apps, builds and manages applications within a cloud technology stack; cloud security, 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, 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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