Rackspace Technology, Inc.

Rackspace Technology, Inc.

Rackspace Technology (RXT) is a managed cloud and professional services provider that helps businesses migrate to, operate and secure applications across multiple public clouds and private environments. It sells recurring managed services, cloud optimisation, security and application services to enterprises that want expertise without building everything in‑house. Investors should weigh the company’s recurring revenue model and potential upside from continued enterprise cloud adoption against clear risks: intense competition from hyperscalers (AWS, Microsoft, Google), pressure on margins from service delivery costs, and ongoing balance‑sheet and cash‑flow constraints. Recent strategy has emphasised higher‑value managed services and partner relationships, but execution and client retention matter. The stock is relatively small by market capitalisation and can be volatile; performance may fluctuate with IT spending and macro conditions. This content is educational, not personalised advice — consider your own risk tolerance and do further research before investing.

Stock Performance Snapshot

Hold

Analyst Rating

Analysts recommend holding Rackspace stock with a target price of $2.41, indicating potential growth.

Average

Financial Health

Rackspace is generating steady revenue and cash flow, but its profit margins are relatively low.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Baskets Featuring RXT

AWS Restructuring Creates Cloud Competition Opportunity

AWS Restructuring Creates Cloud Competition Opportunity

Amazon's job cuts in its profitable AWS cloud division could mean big opportunities for competitors. This carefully selected group of stocks represents companies positioned to gain market share, attract top talent, and capitalize on this moment of cloud industry disruption.

Published: July 20, 2025

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Why You’ll Want to Watch This Stock

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Cloud Services Demand

Enterprises continue moving workloads to cloud environments, which can support recurring managed‑service revenue — though outcomes depend on competition and execution.

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Partner Ecosystem Strength

Strong alliances with hyperscalers and software vendors can expand opportunities, but dependence on partners also brings commercial and strategic risks.

Margins & Cash Flow

Profitability and free cash flow are key to de‑risking the story; investors should watch margin trends and balance‑sheet progress, as performance can vary.

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