Rackspace Hosting, Inc. (RAX): Should You Watch This?

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And that’s why enterprise contracts should provide an upward catalyst in a couple of quarters. “Today, or maybe later this week, ought to be the trough” for Rackspace shares, McCarver said. “The company has tremendous long-term earnings power, and the stock is cheap below $40.”

Lost in the revenue shuffle, Rackspace Hosting, Inc. (NYSE:RAX) actually delivered earnings just above Street targets. I do agree that the long-term story looks intact here, and would treat this trough as a buy-in opportunity. My personal stake and bullish CAPScall are staying put.

RAX Chart

RAX data by YCharts.

The article Did Rackspace Deserve This Trouncing? originally appeared on Fool.com and is written by Anders Bylund.

Fool contributor Anders Bylund owns shares of Google Inc (NASDAQ:GOOG) and Rackspace Hosting. The Motley Fool recommends Amazon.com, Inc. (NASDAQ:AMZN), Google, and Rackspace Hosting. The Motley Fool owns shares of Amazon.com and Google.

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