NEW YORK (TheStreet) -- Shares of Rackspace Hosting Inc. (RAX) are lower -1.75% to $33.12 following a report the cloud provider is refusing to join in the price cutting battle going on between Google (GOOG), Microsoft (MSFT) and Amazon (AMZN).
The three competitors are slashing prices in an attempt to affect each others profit margins.
Chief technical officer for Rackspace, John Engates said "Rackspace is not a commodity cloud provider," when asked by The A Channel if it would match Amazon, Google and Microsoft in their latest price cuts.
"We do not base our prices on competitors' rental rates for raw infrastructure. Rackspace has for 15 years charged premium prices for premium service, expertise, performance and reliability," Engates said.
TheStreet Ratings team rates RACKSPACE HOSTING INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate RACKSPACE HOSTING INC (RAX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."