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RXT

RackspaceD
Nasdaq / Software & Services
Last Price
Quote time unavailable
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Current thesis
The best bull read is that Q1 2026 showed modest top-line growth, stronger Public Cloud momentum, sharply improved operating loss, and positive net income, while management also put a concrete FY2026 guide around revenue and profit. If investors believe the AMD AI infrastructure narrative can drive higher-value regulated-enterprise workloads, the stock can keep rerating from a distressed base.
Posture
Defensive
Lead driver
Sentiment
What changed
Sentiment remains the lead driver in the composite, 7D delta -3.0.
What can break
Debt remains the central balance-sheet risk: the 2025 10-K shows about $2.49 billion of debt obligations, including roughly $2.45 billion due in 2028, and explicitly warns that the company may not generate sufficient cash to service or refinance its indebtedness. [#10-K-2026-03-06]
Momentum
4
Value
58
Sentiment
57
Setup hits (3d)
0 · Net Neutral
AI TargetsBase $3.00 · Bull $4.75 · Bear $1.75Analysis 2026-05-08; returns require an exact persisted reference.
Data freshness
Prices
Unavailable: Price unavailable
Fundamentals
As of 2026-08-17 • Vendor: Data Vendor v1
Scores
As of 2026-09-09 • Model: HYBRID_IC_RP
AI Memo
As of 2026-05-08 • Model: RankAlpha Sentiment Codex
Investment thesis
As of 2026-09-09

Grade is the composite factor band; factor scores use a 0–100 scale. Confidence describes evidence quality, not a probability of return. Score date: 2026-09-09. Definitions

Supporting evidence
What
Grade D · Defensive
Confidence Medium · Net Neutral
Target $4.77
Why
Momentum4 · Δ7d +0.6
Value58 · Δ7d +0.0
Sentiment57 · Δ7d -3.0
So what
Weak posture (Net Neutral). Prioritize risk control and patience.

Confirming evidence

  • • Sentiment remains the lead driver in the composite, 7D delta -3.0.

Contradictions & invalidation

  • • Debt remains the central balance-sheet risk: the 2025 10-K shows about $2.49 billion of debt obligations, including roughly $2.45 billion due in 2028, and explicitly warns that the company may not generate sufficient cash to service or refinance its indebtedness. [#10-K-2026-03-06]
  • • Private Cloud revenue fell 6% year over year in Q1 2026, while gross profit declined to $119.1 million from $126.9 million, showing that the legacy base is still under pressure even as Public Cloud grows. [#8-K-2026-05-07]
  • • The bear read is that Private Cloud is still shrinking, gross profit fell year over year, Q1 operating cash flow was only $5 million, and the reported net income included a gain on debt extinguishment.

Catalyst clock

2026-06-30

Q1 2026 results created a near-term rerating setup, but quality of the print was mixed

Lead driver: Sentiment · See AI snapshot
Momentum
4
9% active weight
Current posture
7d trendFlat
Δ7d
+0.6
Δ21d
-76.3
Value
58
28% active weight
Current posture
7d trendFlat
Δ7d
+0.0
Δ21d
-0.9
Sentiment
57
62% active weight
Current posture
7d trendSoftening
Δ7d
-3.0
Δ21d
+12.1
Why this grade

Composite grade D. Momentum 4.2 / Value 58.1 / Sentiment 56.8

Scenario snapshot

Scenario probability is memo-authored likelihood, not forecast certainty. Targets belong to the analysis dated 2026-05-08. Scenario method

B+
Bull case
25%
Probability
Target price
$4.75
Analysis reference price unavailable
Analysis 2026-05-08 · RankAlpha Sentiment Codex
Most likely
B
Base case
45%
Probability
Target price
$3.00
Analysis reference price unavailable
Analysis 2026-05-08 · RankAlpha Sentiment Codex
B-
Bear case
30%
Probability
Target price
$1.75
Analysis reference price unavailable
Analysis 2026-05-08 · RankAlpha Sentiment Codex
Fundamentals (TTM)
As of 2026-08-17
Market Cap
$1.01B
Beta
2.19
Shares Out
254.87M
P/E (TTM) · Derived
-4.2
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 2026-09-09 • Updated nightlySource: Internal modelMethods & Data