Rackspace Hosting Inc. (RAX): Today's Featured Technology Winner

Rackspace Hosting ( RAX) pushed the Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day down 0.1%. By the end of trading, Rackspace Hosting rose $1.32 (3.2%) to $42.01 on average volume. Throughout the day, 2,225,265 shares of Rackspace Hosting exchanged hands as compared to its average daily volume of 2,457,800 shares. The stock ranged in a price between $40.65-$42.37 after having opened the day at $40.73 as compared to the previous trading day's close of $40.69. Other companies within the Technology sector that increased today were: SouFun Holdings ( SFUN), up 19.3%, ReneSola ( SOL), up 19.0%, Dataram Corporation ( DRAM), up 15.1% and Wi-Lan ( WILN), up 13.8%.

Rackspace Hosting, Inc., through its subsidiaries, 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 $5.6 billion and is part of the computer software & services industry. Shares are down 45.2% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Rackspace Hosting a buy, 2 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Rackspace Hosting as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity.

On the negative front, Deltathree ( DDDC), down 30.0%, SatCon Technology Corporation ( SATC), down 25.0%, UBIC Inc ADR ( UBIC), down 8.9% and ARC Group Worldwide ( ARCW), down 8.7% , were all laggards within the technology sector with Crown Castle International ( CCI) being today's technology sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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