Bullish indicating open at $55-$60, IPO prices at $37
Rackspace Technology Inc (NASDAQ:RXT) stock has tumbled to a 52-week low, touching down at $1.29, representing a steep 40% decline year-to-date. According to InvestingPro analysis, the stock’s RSI indicates oversold conditions, while the company’s Fair Value suggests current undervaluation. This latest price point underscores a period of significant volatility for the firm, which has seen its stock price erode by 53% over the past six months. Investors are closely monitoring Rackspace’s performance, as the company navigates through internal restructuring and external pressures, with InvestingPro data revealing concerning metrics including significant debt burden and weak gross profit margins of 20%. Access the comprehensive Pro Research Report for deeper insights into RXT’s financial health and future prospects.
In other recent news, Rackspace Technology reported its fourth-quarter results, surpassing analyst expectations with adjusted earnings per share of -$0.02 compared to the projected -$0.04. The company also exceeded revenue forecasts, posting $685.6 million against the anticipated $674.98 million. However, this still marked a 5% year-over-year decline from the previous year’s $720 million. For the entire year of 2024, Rackspace’s total revenue decreased by 7% to $2.74 billion. The company has provided guidance for the first quarter of 2025, forecasting revenue between $653 million and $665 million, aligning closely with the consensus estimate of $659.6 million. Meanwhile, Rackspace Technology has appointed KPMG LLP as its new auditor for the fiscal year ending December 31, 2025, following a competitive bid process. This change comes after the dismissal of PricewaterhouseCoopers LLP, with no disagreements reported between the company and PwC. Despite recent financial achievements, investors seemed unimpressed with the company’s outlook, focusing on declining revenues in its private and public cloud segments.
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