Rackspace Technology (RXT) Stock Price, News & Analysis

Company Overview

Rackspace Technology (NASDAQ:RXT) is a global leader in end-to-end cloud computing and managed IT services. The company specializes in designing, building and operating cloud environments across public, private and hybrid platforms. Its core offerings include managed hosting, application services, database management, security and managed DevOps, enabling enterprises to optimize performance, control costs and accelerate innovation in multi-cloud ecosystems.

Founded in 1998 in San Antonio, Texas, Rackspace Technology originally gained prominence as a pioneering managed hosting provider. Over the years, it evolved its service portfolio through strategic acquisitions and organic development, expanding into cloud migration, professional services, and data analytics. The company went public in 2008, underwent private ownership in 2016, and returned to the public market in 2020, leveraging each transition to strengthen its technology stack and deepen its partner ecosystem, which includes leading cloud vendors such as Amazon Web Services, Microsoft Azure and Google Cloud Platform.

With operations in North America, Europe, Asia Pacific, Australia and the Middle East, Rackspace Technology serves clients across industries such as healthcare, financial services, retail, manufacturing and the public sector. Its regional data centers and global support network enable 24x7x365 availability, rapid response times and compliance with local data sovereignty requirements. The company also maintains strategic alliances with technology vendors and system integrators to deliver tailored solutions for both large enterprises and midsize organizations.

Rackspace Technology is led by Chief Executive Officer Kevin Jones, who brings more than two decades of experience in cloud and managed services. Under his leadership, the company has sharpened its focus on customer success, innovation and operational excellence. The senior management team comprises seasoned executives in engineering, sales, marketing and finance, all committed to guiding customers through digital transformation journeys and driving sustainable growth.

Key Stats

• Today's Range: $1.37 to $1.42
• 50-Day Range: $1.03 to $1.44
• 52-Week Range: $1.00 to $3.41
• Volume: 353,641 shs
• Average Volume: 931,825 shs
• Market Capitalization: $327.60 million
• P/E Ratio: N/A
• Dividend Yield: N/A
• Price Target: $1.63
• Consensus Rating: Reduce

Rackspace Technology Stock Analysis - MarketRank™

Rackspace Technology scored higher than 14% of companies evaluated by MarketBeat, and ranked 270th out of 303 stocks in the business services sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.9 / 5
• Analyst Rating: Reduce

Consensus Rating

Rackspace Technology has received a consensus rating of Reduce. The company's average rating score is 1.75, and is based on no buy ratings, 3 hold ratings, and 1 sell rating.

Amount of Analyst Coverage

Rackspace Technology has only been the subject of 4 research reports in the past 90 days.

Earnings and Valuation

• Score: 0.0 / 5
• Proj. Earnings Growth: N/A

Price to Earnings Ratio vs. the Market

The P/E ratio of Rackspace Technology is -1.08, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Earnings Ratio vs. Sector

The P/E ratio of Rackspace Technology is -1.08, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Short Interest

• Score: 2.0 / 5
• Short Interest Level: Bearish

Percentage of Shares Shorted

9.04% of the float of Rackspace Technology has been sold short.

Short Interest Ratio / Days to Cover

Rackspace Technology has a short interest ratio ("days to cover") of 5.9.

Change versus previous month

Short interest in Rackspace Technology has recently decreased by 4.43%, indicating that investor sentiment is improving.

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

Rackspace Technology does not currently pay a dividend.

Dividend Growth

Rackspace Technology does not have a long track record of dividend growth.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

9.04% of the float of Rackspace Technology has been sold short.

Short Interest Ratio / Days to Cover

Rackspace Technology has a short interest ratio ("days to cover") of 5.9.

Change versus previous month

Short interest in Rackspace Technology has recently decreased by 4.43%, indicating that investor sentiment is improving.

News and Social Media

• Score: 1.4 / 5
• News Sentiment: 0.45

News Sentiment

Rackspace Technology has a news sentiment score of 0.45. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.63 average news sentiment score of Business Services companies.

News Coverage This Week

MarketBeat has tracked 3 news articles for Rackspace Technology this week, compared to 3 articles on an average week.

Search Interest

Only 1 people have searched for RXT on MarketBeat in the last 30 days. This is a decrease of -50% compared to the previous 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Rackspace Technology insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 2.90% of the stock of Rackspace Technology is held by insiders.

Percentage Held by Institutions

82.48% of the stock of Rackspace Technology is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

RXT Stock Analysis - Frequently Asked Questions

How have RXT shares performed this year?

Rackspace Technology's stock was trading at $2.21 at the beginning of the year. Since then, RXT stock has decreased by 37.6% and is now trading at $1.38.

How were Rackspace Technology's earnings last quarter?

Rackspace Technology, Inc. (NASDAQ:RXT) announced its quarterly earnings results on Thursday, May, 8th. The company reported ($0.06) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.08) by $0.02. The business's quarterly revenue was down 3.7% compared to the same quarter last year.
Read the conference call transcript.

When did Rackspace Technology IPO?

Rackspace Technology (RXT) raised $754 million in an initial public offering (IPO) on Wednesday, August 5th 2020. The company issued 33,500,000 shares at a price of $21.00-$24.00 per share. Goldman Sachs, Citigroup, JPMorgan, RBC Capital Markets and Evercore ISI served as the underwriters for the IPO and Barclays, BMO Capital Markets, Credit Suisse, Deutsche Bank Securities, HSBC, LionTree, Siebert Williams Shank, Drexel Hamilton and Apollo Global Securities were co-managers.

How do I buy shares of Rackspace Technology?

Shares of RXT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Rackspace Technology own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Rackspace Technology investors own include NVIDIA (NVDA), Meta Platforms (META), CrowdStrike (CRWD), Advanced Micro Devices (AMD), Digital Turbine (APPS).

Company Calendar

• Last Earnings: 5/08/2025
• Today: 7/09/2025
• Next Earnings (Estimated): 8/06/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Business Services
• Industry: Technology Services
• Sub-Industry: Computer Software
• Current Symbol: NASDAQ:RXT
• CIK: 1810019
• Web: www.rackspace.com
• Phone: 210-312-4000
• Fax: N/A
• Employees: 5,100
• Year Founded: N/A

Price Target and Rating

• Average Price Target for Rackspace Technology: $1.63
• High Price Target: $2.00
• Low Price Target: $1.00
• Potential Upside/Downside: +18.4%
• Consensus Rating: Reduce
• Rating Score (0-4): 1.75
• Research Coverage: 4 Analysts

Profitability

• EPS (Trailing Twelve Months): ($1.28)
• Trailing P/E Ratio: N/A
• Forward P/E Ratio: N/A
• P/E Growth: N/A
• Net Income: -$858.20 million
• Net Margins: -10.82%
• Pretax Margin: -11.05%
• Return on Equity: N/A
• Return on Assets: -1.55%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 0.79
• Quick Ratio: 0.79

Sales & Book Value

• Annual Sales: $2.74 billion
• Price / Sales: 0.12
• Cash Flow: $4.60 per share
• Price / Cash Flow: 0.30
• Book Value: ($4.41) per share
• Price / Book: -0.31

Miscellaneous

• Outstanding Shares: 237,390,000
• Free Float: 230,505,000
• Market Cap: $327.60 million
• Optionable: Optionable
• Beta: 2.06