So what is Rackspace and what does the company do?
Rackspace is a cloud services provider that helps companies port data to Amazon Web Services, and also provides infrastructure management and managed application services.
It also helps Amazon (AMZN) - Get Amazon.com, Inc. Report competitors Google Cloud (GOOGL) - Get Alphabet Inc. Class A Report, Microsoft Azure (MSFT) - Get Microsoft Corporation Report, VMWare undefined and more to move data around.
Founded in 1998, Rackspace went public on August 5, 2020 The company was acquired by private equity firm Apollo Capital Management in 2016.
Though IPOs on TheStreet noted that the company was richly valued heading into its IPO, the stock faced a rocky debut. Rackspace plunged 20% in its debut after pricing shares for around $21. Some on Wall Street fear Rackspace will struggle to compete with larger names in the space, including those to which it provides its services.
Can a little interest from the almighty Death Star turn things around?
As of midday trading Monday, August 17, the stock is trading at $18.74, trading up over 12%. While the stock remains beneath its public offering pricing, Amazon’s reported interest in investing in the company has investors feeling a little bullish.
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