Cloud computing company Rackspace (RAX) reported third-quarter earnings that were in line on Tuesday, as revenue rose 27% year over year. Rackspace reported earnings of $27.2 million, or 19 cents a share, on revenue of $335.9 million. Analysts polled by Thomson Reuters were looking for earnings of 19 cents a share on revenue of $335.9 million. Rackspace shares closed the week down 9.1% at $60.48.
Not all is rosy on the earnings front, as Groupon (GRPN - Get Report) badly missed earnings estimates on Thursday amidst concerns over the viability of its business. The company is transitioning itself from a daily deals site, and focusing on its Goods business, which has lower margins. Groupon reported break-even earnings on $568.8 million in revenue. Analysts polled by Thomson Reuters were looking for earnings of 3 cents a share on $590.1 million in revenue. Revenue rose 32% year over year, but Wall Street was looking for more. Groupon provided fourth-quarter revenue guidance, that at the midpoint, was better than Wall Street's forecast. Analysts expected Groupon to generate $633.87 million in revenue, earning 4 cents a share. Groupon expects revenue to be between $625 million and $675 million. Shares of Groupon plunged 28% this week to finish at $2.76.