This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Make Room for Rackspace

Stocks in this article: RAX

NEW YORK ( TheStreet) -- If you're in business for yourself or you work for a company with an online presence, you know how important it is to have a reliable "host" for your site.

This "host" has to have the powerful servers and applications needed to make your Web site operate smoothly and reliably. It should provide cloud computing services, be able to manage Web-based IT systems and have the capacity to do this for businesses of all sizes including large global enterprises.

The current heavy-weight in this vital technology is RackspaceHosting (RAX) based in San Antonio, Texas.

They're so good at providing a Web hosting service for their clients that their business has been growing at a dizzying pace, with year-over-year quarterly earnings growth reaching 43% in the three-month period ending June 30.

Shares of RAX have been as hot as their business acumen, hitting a 52-week high of $65.26 on Tuesday, Sept. 11. More about the share price later. Suffice it to say this is one of the hottest tech stocks of 2012, mainly because they're a company that's good at what they do.

Earlier this summer Rackspace was named the 2012 Microsoft Hosting Partner of the Year, an award that recognizes managed, cloud and hybrid hosting. This marks the fourth time RAX has received this coveted honor. They were chosen from among 3,000 global Microsoft partners who applied.

This speaks to their commitment to partner very closely with Microsoft (MSFT) and to grow their services in lockstep with the direction that Web hosting needs to go.

As the "newsroom" on the RAX Web site explains being selected as Microsoft's 2012 Hosting Partner of the Year was a very important way for RAX to separate themselves from their competition.

The news story went on to explain that this achievement was earned "...for demonstrating solution innovations and exemplary commitment to engaging with Microsoft."

"We have focused on hosted solutions for customers' business challenges, identified new market opportunities and along with Microsoft, used technology innovation to address customer needs. In addition, we've allowed our partners to leverage our innovation as the partner community becomes a more integral part of Rackspace and its business," exclaimed their news release. That's part of the brilliant business model that RAX has followed faithfully.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs