There will be speculation as to who that customer is. But suffice it to say, this statement was enough to reignite interest in the stock. As I've said Monday, Racksapce is far from a terrible company. But its rise and fall underscores the consequence of "buying buzz," particularly in the tech sector.

The good news is that business conditions are improving and there are now signs that the company's recent struggles are on the mend. But it's still hard to forecast where this industry is heading, given that there are so many players. And I don't see how it makes sense to bet against Amazon and Google.

Rackspace has received some much-needed berating room. But the war for the cloud is far from over. 

At the time of publication, the author held no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Read more: Why Twitter Has More Upside Than Facebook

If you liked this article you might like

Rackspace Confirms Departure of COO Roenigk

Largest U.S. Banks Bullish About M&A Despite Lackluster 2016

F5 Networks May Catch Activist Investor Attention Amid Sector Consolidation

Tech Deals Propel Wachtell, Wilson Sonsini to Big Third Quarter

Oracle Continues Its All-Out Push Into the Cloud, but Amazon and Others Aren't Standing Still