Rackspace Hosting

(

RAX

) pushed the Internet industry higher today making it today's featured internet winner. The industry as a whole closed the day up 1%. By the end of trading, Rackspace Hosting rose 69 cents (1.4%) to $51.38 on average volume. Throughout the day, two million shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 2.1 million shares. The stock ranged in a price between $50.90-$52.37 after having opened the day at $51.07 as compared to the previous trading day's close of $50.69. Other companies within the Internet industry that increased today were:

Deltathree

(

DDDC

), up 66.7%,

Edgar Online

(

EDGR

), up 50%,

ChinaCache International Holdings

(

CCIH

), up 20.9%, and

Ariba

(

ARBA

), up 19.2%.

Rackspace Hosting, Inc. provides cloud computing services, managing Web-based IT systems for small and medium-sized businesses, and large enterprises worldwide. Rackspace Hosting has a market cap of $6.85 billion and is part of the

technology

sector. The company has a P/E ratio of 78.4, below the average computer software & services industry P/E ratio of 81.8 and above the S&P 500 P/E ratio of 17.7. Shares are up 13.1% year to date as of the close of trading on Monday. Currently there are eight analysts that rate Rackspace Hosting a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates Rackspace Hosting as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

On the negative front,

Facebook Inc Class A

(

FB

), down 8.9%,

Global Sources

(

GSOL

), down 6.9%,

Yelp

(

YELP

), down 6.7%, and

TechTarget

(

TTGT

), down 6.5%, were all losers within the internet industry with

Youku

(

YOKU

) being today's internet industry loser.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the internet industry could consider

First Trust Dow Jones Internet Idx

(

FDN

) while those bearish on the internet industry could consider

ProShares Ultra Short Technology

(

REW

).

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