Is Rackspace Technology, Inc. (RXT) A Good Stock To Buy Now?

Is RXT a bully banal to buy? We came crossed a bullish thesis on Rackspace Technology, Inc. connected r/smallstreetbets by lumbridge12. In this article, we volition summarize the bulls' thesis connected RXT. Rackspace Technology, Inc.'s stock was trading astatine $4.5100 arsenic of June 8th. RXT's guardant P/E was 91.74 according to Yahoo Finance.

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Rackspace Technology, Inc. operates arsenic a hybrid unreality and artificial quality solutions institution successful the United States and internationally. RXT is emerging arsenic a perchance overlooked beneficiary of the increasing endeavor AI infrastructure marketplace pursuing its concern announcement with Palantir Technologies. The company, which erstwhile traded adjacent $26 per stock earlier collapsing to beneath $0.50, has precocious attracted renewed capitalist attraction aft Palantir selected Rackspace to enactment deployment of its Artificial Intelligence Platform (AIP) connected Rackspace's infrastructure.

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The concern is notable due to the fact that Rackspace operates successful a highly competitory unreality situation alongside hyperscalers specified arsenic Amazon Web Services, Microsoft Azure, and Google Cloud, yet inactive secured a strategical relation owed to its expertise successful hybrid and backstage unreality infrastructure, AI governance, and endeavor consulting. Rackspace presently generates astir $3 cardinal successful yearly gross portion trading astatine a comparatively humble marketplace capitalization compared to galore AI-related companies that nutrient small oregon nary revenue.

The institution serves much than 20,000 customers globally crossed healthcare, government, and endeavor markets, positioning it good arsenic businesses progressively prioritize backstage and hybrid unreality solutions for information sovereignty and security. Management has besides made advancement operationally, importantly reducing operating losses implicit the past twelvemonth portion maintaining relationships with cardinal exertion partners including NVIDIA, AMD, AWS, Google Cloud, and Microsoft.

Additional AI initiatives, including collaboration with Uniphore for agentic AI infrastructure, further fortify Rackspace's positioning. With Apollo Global Management inactive holding a bulk involvement and a constricted nationalist float, investors judge the banal could acquisition important upside if the institution successfully capitalizes connected endeavor AI adoption and continues executing its turnaround strategy.

Previously, we covered a bullish thesis connected Accenture plc by Sanjiv successful December 2024, highlighting its enactment successful unreality migration, managed services, and GenAI-driven endeavor transformation. Accenture plc's banal has depreciated by astir 51.02% since our coverage. lumbridge12 shares a akin presumption but focuses connected Rackspace Technology, Inc.'s AI infrastructure turnaround accidental driven by hybrid unreality capabilities and its concern with Palantir Technologies.