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RXT

RackspaceB
Nasdaq / Software & Services
Last Price
Quote time unavailable
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Current thesis
Q2 revenue beat Rackspace's own preliminary range, while Private Cloud revenue rose 5% year over year. Successful funded AI deployments could add a growth line beyond the core business.
Posture
Constructive
Lead driver
Value
What changed
Value remains the lead driver in the composite, 7D delta +0.5.
What can break
AI-capacity targets depend on customer demand, hardware lead times, financing and realized utilization; illustrative revenue is not a booking. [#SEC-8K-2026-07-09]
Momentum
71
Value
60
Sentiment
50
Setup hits (3d)
0 · Net Neutral
AI TargetsBase $2.90 · Bull $4.10 · Bear $1.40Analysis 2026-10-20; returns require an exact persisted reference.
Data freshness
Prices
Unavailable: Price unavailable
Fundamentals
As of 2026-10-23 • Vendor: Data Vendor v1
Scores
As of 2026-10-23 • Model: HYBRID_IC_RP
AI Memo
As of 2026-10-20 • Model: RankAlpha Sentiment Codex
Investment thesis
As of 2026-10-23

Grade is the composite factor band; factor scores use a 0–100 scale. Confidence describes evidence quality, not a probability of return. Score date: 2026-10-23. Definitions

Supporting evidence
What
Grade B · Constructive
Confidence Medium · Net Neutral
Target $4.77
Why
Momentum71 · Δ7d -2.4
Value60 · Δ7d +0.5
Sentiment50 · Δ7d +14.6
So what
Strength-led posture (Net Neutral). Favor watchlist adds and disciplined entries.

Confirming evidence

  • • Value remains the lead driver in the composite, 7D delta +0.5.

Contradictions & invalidation

  • • AI-capacity targets depend on customer demand, hardware lead times, financing and realized utilization; illustrative revenue is not a booking. [#SEC-8K-2026-07-09]
  • • July guidance reset cited lower-margin Public Cloud resale exits, Private Cloud supply timing and upfront AI investment. [#SEC-8K-2026-07-09]
  • • The July FY2026 revenue and adjusted-EBITDA resets, Q2 Public Cloud decline, $68 million GAAP net loss and $32 million operating cash outflow leave substantial execution and financing risk.

Catalyst clock

2026-12-31

Initial enterprise-AI capacity deployment

Lead driver: Value · See fundamentals
Momentum
71
8% active weight
Current posture
7d trendSoftening
Δ7d
-2.4
Δ21d
+45.2
Value
60
47% active weight
Current posture
7d trendFlat
Δ7d
+0.5
Δ21d
+3.3
Sentiment
50
45% active weight
Current posture
7d trendImproving
Δ7d
+14.6
Δ21d
+19.3
Why this grade

Composite grade B. Momentum 71.5 / Value 60.1 / Sentiment 50.0

Scenario snapshot

Scenario probability is memo-authored likelihood, not forecast certainty. Targets belong to the analysis dated 2026-10-20. Scenario method

B+
Bull case
20%
Probability
Target price
$4.10
Analysis reference price unavailable
Analysis 2026-10-20 · RankAlpha Sentiment Codex
Most likely
B
Base case
50%
Probability
Target price
$2.90
Analysis reference price unavailable
Analysis 2026-10-20 · RankAlpha Sentiment Codex
B-
Bear case
30%
Probability
Target price
$1.40
Analysis reference price unavailable
Analysis 2026-10-20 · RankAlpha Sentiment Codex
Fundamentals (TTM)
As of 2026-10-23
Market Cap
$721.29M
Beta
2.19
Shares Out
254.87M
P/E (TTM) · Derived
-3.0
P/S (TTM)
0.09
P/FCF (TTM)
3.53
Rev YoY
+0.6%
EPS YoY
+17.9%
Gross Margin
+12.2%
Op Margin
-1.7%
Net Debt
$3.18B
Current Ratio
0.76
As of 2026-10-23 • Updated nightlySource: Internal modelMethods & Data