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Rackspace Technology Inc (NASDAQ:RXT) stock has hit a 52-week low, dropping to $1.06, representing a 69% decline from its 52-week high of $3.41. InvestingPro analysis reveals concerning fundamentals, with a weak gross profit margin of 20.2% and current ratio of 0.79 indicating liquidity challenges. This new low underscores a challenging year for RXT, which has seen its stock price plummet by 45.71% over the past year. With revenue declining 6.14% and a negative return on assets of -8.92%, investors are closely monitoring the company’s performance, seeking signs of a turnaround that could stem the tide of its declining share value. The market is keenly awaiting RXT’s strategic moves to address the issues that have led to this significant drop in investor confidence. For deeper insights into RXT’s financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, which includes 8 additional key tips and extensive financial metrics.
In other recent news, Rackspace Technology Inc. reported its Q1 2025 earnings, showcasing a revenue of $665 million, which exceeded the forecast of $658.68 million. The company posted a non-GAAP loss per share of $0.06, slightly better than the forecasted loss of $0.0762. Despite a 4% year-over-year decline in total GAAP revenue, Rackspace achieved an 83% increase in non-GAAP operating profit to $26 million. The company also provided guidance for Q2 2025, expecting revenue between $653 million and $665 million. Raymond (NSE:RYMD) James analysts downgraded Rackspace’s stock rating from Outperform to Market Perform, citing a longer path to improved growth and free cash flow than initially expected. RBC Capital Markets adjusted its price target for Rackspace from $3.00 to $2.00, while maintaining a Sector Perform rating, following Rackspace’s earnings report that showed the company surpassing expectations for both revenue and earnings. These developments indicate ongoing efforts by Rackspace to stabilize and grow its business, with analysts maintaining a cautious outlook on its near-term prospects.
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