Tag Archives: rax

Rackspace Pops On M&A Signal; AT&T, HP, Cisco Loom

AT&T, Hewlett-Packard (HPQ), EMC (EMC), Cisco Systems and IBM loom as possible buyers of Rackspace Hosting (RAX), whose stock jumped late Thursday after the company said it had hired Morgan Stanley to explore strategic options, including a sale or partnership. Rackspace’s stock rose 14% before the market open in the stock market today. Shares in Rackspace popped 7% on Thursday — mostly on last-minute spike — after Bloomberg reported that Rackspace

Rackspace Q1 Beat, Revenue Outlook Send Stock Up

Rackspace Hosting (RAX) stock rose after the cloud computing and Web hosting service company reported Q1 profit and revenue above estimates and raised its forecast for current quarter sales. Rackspace’s shares were up more than 12% in early trading in the stock market today. San Antonio-based Rackspace reported Q1 results late Monday. Rackspace earned 18 cents per share, down a penny from a year earlier. Revenue rose 16% to $421 million, Rackspace

Cloud computing market thunders with Google, Amazon price cuts

Where there are clouds, there’s going to be thunder. And that certainly holds true for cloud computing. Google and Amazon.com this week created a lot of noise in the information technology industry when they slashed prices on their Internet-based services for businesses. On Tuesday, Google cut prices dramatically for its cloud-computing services, which allow companies to rent computing resources accessed via the Internet cloud. On Wednesday, Amazon responded with price reductions for its Amazon Web Services. Those actions are the latest in an ongoing price war where the major IT companies are battling to dominate the next-generation computing platform. Other players, including Hewlett-Packard (HPQ), IBM (IBM), Microsoft (MSFT) and Rackspace (RAX), have been cutting prices as well. RBC Capital Markets estimates that Amazon (AMZN) Web Services has lowered prices by 36% vs. early Q4 2013 levels, to an effective rate of $27 per gigabyte of RAM per month. Google (GOOG) has lowered pricing by 35% to $34 per GB of RAM per month over the same period, RBC said in a research note late Wednesday.