Rackspace
RXTMarket price data through August 3, 2026.
Performance
Aug 2021 – Aug 2026
Track record
How this pick has done since Benson first called it.
- Benson Return
- -19%
- How much this stock is up since Benson first picked it — measured from the price at the time of that first pick, not from today.
- First pick price
- ~$6
- Roughly what one share cost when Benson first picked this stock. This is the starting line for the Benson Return.
- Tracking since
- June 2026
- The month this stock first became a Benson pick.
- Tracking duration
- 2 months
- How long Benson has been tracking this pick.
About Rackspace
Rackspace is reinventing itself from an outsourced cloud helper into an enterprise AI company. Think of it as the specialist that big banks, hospitals, and government agencies can hire to run artificial intelligence on their own private systems, so their sensitive data never leaves their control. It still helps businesses run technology on Amazon, Microsoft, and Google, but its future now rides on that AI bet.
The case for and against
Both sides of the story, in plain English.
- AI Reinvention
Rackspace is rebuilding itself as an enterprise AI operator for regulated industries that need tight security. Management believes its planned AI capacity could generate 450 to 600 million dollars a year once fully built out by 2028, at profit margins above 50 percent, far richer than its old business.
- Palantir Partner
Rackspace just became a preferred Palantir partner and has trained roughly 400 of its people on Palantir's software. Their first joint project cut a manufacturer's quote time by 94 percent, an early sign the new strategy can win real customers.
- Guidance Cut
Rackspace just lowered its full year revenue forecast by 150 million dollars, now expecting 2.45 to 2.55 billion dollars. For the latest quarter it expects a net loss of up to 91 million dollars, so the profits it had briefly touched have reversed.
- Fading Old Business
Its public cloud resale business is expected to fall as much as 15 percent this year as giants like Amazon move customers to direct deals. To fund the AI pivot Rackspace is also raising new stock, which can water down the value of existing shares.
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How to read this page
This automated research summary uses Financial Modeling Prep market data through 2026-08-03. Model signals, scores, and risk labels can change and may be incomplete or wrong.
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