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  1. #1
    Join Date
    Feb 2003
    Location
    NY
    Posts
    11,863

    RAX gets slammed post earnings

    Not sure how many of you follow the stock market, but I figured its a very relevant topic since Rackspace is a hosting provider.

    Did anyone see the 20% loss the stock took yesterday after reporting record sales, operating and net income.

    Sales in the company’s cloud-computing service rose 49 percent to $87.3 million. The business now accounts for 25 percent of total sales, up from 21 percent a year ago.

    Do you think the OpenStack cloud platform will continue to grow and be a success?
    Doug
    Finance, Operations, and Business Executive

  2. #2
    Join Date
    May 2002
    Posts
    1,062
    It showed 17% profit growth on 25% sales growth, both missed the estimates and have decelerated for four straight quarters. The sales gain was the weakest since 2010.
    If you pay peanuts, you get monkeys.

  3. #3
    Join Date
    Feb 2003
    Location
    NY
    Posts
    11,863
    Quote Originally Posted by target View Post
    It showed 17% profit growth on 25% sales growth, both missed the estimates and have decelerated for four straight quarters. The sales gain was the weakest since 2010.
    Yes, but the keyword is they're still gaining, just missed "expectations". They've been growing at such a rapid rate it had to slow eventually (IMO).

    My question is really, what do you think about the OpenStack model?
    Doug
    Finance, Operations, and Business Executive

  4. #4
    Join Date
    Apr 2008
    Location
    United States, MI
    Posts
    769
    It's a .com, people get all antsy about internet companies. The loss is more of a reflection of not understanding the technology/demand/use cases then raw numbers.

    People don't want their money to pull a Facebook, I'm assuming. Not that I would buy into RAX anyway.
    Steven Crothers
    No BS cloud engineer and Red Hat architect.

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