Rackspace reported third-quarter earnings of 19 cents per share on $335.9 million in revenue. Wall Street analysts polled by Thomson Reuters were expecting 19 cents per share on $335 million in revenue.
Stifel Nicolaus raised its price target on the stock to $80 from $65 following the report though, saying it believes Rackspace will continue to grow at a 25% clip for the next few years.
The stock was down nearly 6% to $62.15 in recent trades.
Apple (AAPL - Get Report) shares were losing more than 3% as concerns about future product innovation at the company weighed on the stock. Apple has delivered the largest product refresh in its history in 2012, updating the iPhone, the iPad twice, announcing a slew of new Macs, and coming out with the iPad mini as it seeks to gobble up tablet market share. The stock was off $18.70 at $561.50 in afternoon action.
Shares of American Tower (AMT - Get Report) and other wireless tower stocks were surging following news that AT&T (T - Get Report) plans to invest $14 billion in its network build-out over the next three years. The Dow component plans to allocated $8 billion toward wireless initiatives and $6 billion toward its wireline infrastructure. American Tower shares were tacking on more than 2% to $75.58. Other tower stocks, such as SBA Communications (SBAC - Get Report) and Crown Castle International (CCI) were also rising on the news. Interested in more on American Tower? See TheStreet Ratings' report card for this stock. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull