Shares of cloud computing company Rackspace ( RAX) slumped 2.28% to $54.07 after the company lowered its prices for cloud bandwidth and content delivery network (CDN) by 33%, responding to increasingly price-sensitive customers. Shares had traded as low as $50.75 after the announcement. San Antonio, TX.-based Rackspace also said it will be implementing tiered pricing for its open cloud product portfolio, starting with Cloud Files, its object storage service. These pricing changes will take place over the next several weeks, starting Feb. 22. The price will change from $0.18 to $0.12 per GB. "The Rackspace Open Cloud is built upon a simple pricing model with no hidden costs or extra charges," John Engates, Chief Technology Officer at Rackspace, said in the press release. "This simple and straightforward pricing approach is a key part of how we help customers take advantage of the real value of the Rackspace Open Cloud, particularly for the next generation of bandwidth and content-centric web applications, which must deliver quality user experiences on a mobile and global basis."
Shutterstock ( SSTK) climbed 16.51% to 32.68 following a 42% jump in revenue year-over-year, as sales hit $42.9 million for the fourth quarter. The commercial digital imagery company announced it now has more than 23 million images and video clips in its possession, and the number of active customer accounts surpassed 750,000 during the quarter. "Our fourth quarter results capped a very strong year for Shutterstock," said Founder and CEO Jon Oringer. "We are very pleased with our progress on product innovation, global market penetration and financial performance over the course of 2012." --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull