Apple, Rackspace, American Tower: Tech Winners & Losers

Rackspace shares drop after an in-line quarterly profit; Apple takes a hit along with the broad market; and American Tower gets a lift from AT&T's spending plans.
By Chris Ciaccia ,

NEW YORK (

TheStreet

) --

Rackspace

(RAX)

shares were slumping Wednesday after the cloud computing company delivered in-line results for the third quarter.

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) - Get Report

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

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