Cloud Computing: Rackspace Hosting Stock Dove 48% in 2013
Grazed from DailyFinance. Author: Anders Bylund.
Shares of cloud computing specialist Rackspace Hosting took a 48% dive in 2013. Given that the S&P 500 index surged 29% higher at the same time, we Rackspace investors are feeling a bit sore at this point. What happened in 2013?
Well, when Rackspace reported fourth-quarter results for 2012 in February, the stock was looking back at a tremendous 55% gain over the previous 12 months. Rackspace largely met sky-high expectations that time but followed up with weak and muddy guidance for the new year…


Cloud computing continued its inexorable spread during 2013. Momentum continued to gather behind the open source OpenStack platform, while private cloud provider VMware looked to extend its reach to public cloud services. Meanwhile Microsoft moved to compete against Amazon with infrastructure as a service support on Azure.