Three Cloud Computing Stocks That Could Be Takeover Candidates: Citrix, Riverbed, RackSpace

August 15, 2011 Off By David
Grazed from InTheMoneyStocks.com.  Author: Nicholas Santiago.

This afternoon, the street is buzzing over the Google Inc.(NASDAQ:GOOG) buyout of Motorola Mobility Holdings Inc.(NYSE:MMI). Most investors on Wall Street were betting that InterDigital Inc.(NASDAQ:IDCC) was the leading candidate for a Google takeover. It just proves that any company with good intellectual properties and important patents could be a takeover target. While investors are focusing on the mobile handset makers today it is the cloud computing stocks that should be watched as takeover candidates.

In 2010, the cloud computing stocks where getting taken over by many of the old technology giants. Recently, stocks such as Cisco Systems Inc.(NASDAQ:CSCO), Microsoft Corp.(NASDAQ:MSFT), and Intel Corp.(NASDAQ:INTC) have really struggled. Any of these tech giants could be in the market for a leading cloud computing company.

The first stock that comes to mind as a takeover candidate would be Citrix Systems Inc.(NASDAQ:CTXS). This company is a leader in business software and services solutions. More and more small to large businesses are using the Citrix Systems applications and products everyday. Keep this stock on the list for a potential takeover by one of the large tech giants that no longer excite investors. Citrix Systems is an exciting stock. This afternoon, CTSX stock is trading higher by 0.95 cents to $61.70 a share.

Riverbed Technology Inc.(NASDAQ:RVBD) is a leading networking stock in the cloud computing space. This stock sold off sharply after reporting earnings July 19, 2011 that were below investors expectations. RVBD stock now looks very attractive around the current levels as a takeover candidate. Companies such as Cisco Systems would certainly consider buying a leading networking stock such as RVBD. After all, Cisco has been struggling for multiple quarters and just the reduction in competition is a positive for the networking giant. RVBD stock is trading higher by $1.43 to $26.00 a share.

Rackspace Hosting Inc.(NYSE:RAX) is a leading hosting and cloud computing company. This stock has sold off sharply since July 7, 2011 when it traded as high as $46.17 a share. This afternoon, RAX stock is trading around the $37.50 level. Rackspace Hosting is profitable and growing, making this stock a good takeover candidate. Many of the large technology companies from the 1990’s could be interested in this company.

Other cloud computing stocks that could be a leading takeover candidate include F5 Networks Inc.(NASDAQ:FFIV), Aruba Networks Inc.(NASDAQ:ARUN), and Juniper Networks Inc.(NASDAQ:JNPR). Once again, the old technology giants from the 1990’s should be on the prowl for a takeover.