“While last week’s analyst day increased our confidence in RAX’s ability to grow its two businesses, we are still unclear as to how RAX can extend its customer intimacy/”fanatical support” discipline to its faster-growing cloud business” he writes. “Given RAX’s ability in penetrating the enterprise [is] unproven and critical to growing its differentiated managed hosting faster than our current estimates and with lower-margin Cloud [business] likely to increase in the revenue mix, we fear future margin compression.”
Goldman Sachs removed the stock from the Conviction List, while maintaining his Buy rating, “as performance has suffered and catalysts have passed.” Despite everything that happened with the Conviction list Rackspace Cloud Hosting giant is up 69 cents, or 4.2%, to $17.15.
forex robot says:
Keep posting stuff like this i really like it
11th May 2010 at 1:24 am
cloudhostingguy says:
Anytime… Glad you liked it!
17th May 2010 at 11:00 am