Cloud Computing: Rackspace Hosting Stock Dove 48% in 2013
December 30, 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…
This is where I saw a rare buy-in opportunity and opened my own position in the stock. My Rackspace investment is down 35% since, because the company has indeed not impressed investors in 2013. The stock plunged twice more on soft results and timid guidance. Rackspace caught a break in August, when the stock bounced 12% higher on a solid second-quarter report, but that was just a temporary respite…
Read more from the source @ http://www.dailyfinance.com/2013/12/29/rackspace-hosting-stock-dove-48-in-2013/