Rackspace
RXTMarket price data through November 12, 2026.
Performance
Nov 2021 – Nov 2026
Track record
How this pick has done since Benson first called it.
- Benson Return
- -49%
- 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
- 5 months
- How long Benson has been tracking this pick.
About Rackspace
Rackspace helps big companies run their technology, and it is rebuilding itself into an operator of private artificial intelligence. Think of it as the specialist that hospitals, banks, and energy firms hire to run AI on systems they control, so their sensitive data never leaves their own walls. Most of its sales still come from helping customers use the Amazon, Microsoft, and Google clouds, and that business is now shrinking.
The case for and against
Both sides of the story, in plain English.
- AI Growth Engine
Rackspace plans to grow its AI computing power from 2 megawatts at the end of 2026 to 15 by the end of 2027 and 30 by the end of 2028. At 15 to 20 million dollars of yearly sales per megawatt, that adds up to 450 to 600 million dollars a year of brand new revenue, with profit margins above 50 percent. The company says this new revenue comes on top of its existing business and does not replace any of it.
- Palantir Preferred
Palantir just named Rackspace a preferred partner for regulated customers like hospitals, banks, and energy companies, joining 2026 deals with AMD, VMware, and Rubrik. Rackspace now holds about 400 Palantir certifications, and their first joint project closed in under two months and cut a solar equipment maker's quoting time by 94 percent.
- Shrinking Sales
Rackspace cut its 2026 sales forecast by 150 million dollars, to 2.45 to 2.55 billion dollars, which means sales fall 5 to 9 percent this year. Its public cloud side, still about 62 percent of sales, is now expected to drop 12 to 15 percent as Amazon, Microsoft, and Google sign customers directly.
- Red Ink Risk
For the June quarter Rackspace expects a net loss of 62 to 91 million dollars on sales of 641 to 649 million dollars. It is selling new shares to fund its AI buildout, which shrinks each existing owner's slice, and the stock tends to swing more than three times as hard as the overall market.
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How to read this page
This automated research summary uses Financial Modeling Prep market data through 2026-11-12. Model signals, scores, and risk labels can change and may be incomplete or wrong.
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