Rackspace
RXTMarket price data through August 21, 2026.
Performance
Aug 2021 – Aug 2026
Track record
How this pick has done since Benson first called it.
- Benson Return
- -44%
- 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 helps big companies run their technology, and it is now rebuilding itself into an enterprise AI operator. Think of it as the specialist that hospitals, banks, energy firms, and government agencies hire to run artificial intelligence on private systems, so their sensitive data never leaves their own walls. It still resells cloud services from Amazon, Microsoft, and Google, but its future rides on that AI bet.
The case for and against
Both sides of the story, in plain English.
- AI Buildout
Rackspace plans to have 15 megawatts of AI computing running by the end of 2027 and 30 megawatts by the end of 2028. At 15 to 20 million dollars of yearly revenue per megawatt, that is 450 to 600 million dollars a year of new sales, with profit margins above 50 percent.
- Palantir Preferred
Palantir just named Rackspace a preferred partner for regulated and government-style customers. Rackspace has trained roughly 400 of its people on Palantir's software, and their first joint project closed in under two months and cut a manufacturer's quoting time by 94 percent.
- Guidance Slashed
Rackspace cut its 2026 revenue forecast by 150 million dollars, to 2.45 to 2.55 billion dollars, and trimmed its profit outlook by 20 million dollars. That is a 5 to 9 percent sales decline this year, not growth.
- Losing Money
For the June quarter Rackspace expects revenue of 641 to 649 million dollars and a net loss of 62 to 91 million dollars. Its cloud resale business is now expected to shrink as much as 15 percent this year, and the company is raising new stock, which can dilute existing shareholders.
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How to read this page
This automated research summary uses Financial Modeling Prep market data through 2026-08-21. Model signals, scores, and risk labels can change and may be incomplete or wrong.
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