Added to YB: 2026-09-03
Pitch date: 2026-08-31
RXT [bullish]
Rackspace Technology, Inc.
-1.32%
current return
Author Info
No bio for this author
Company Info
Rackspace Technology, Inc. operates as a hybrid cloud and artificial intelligence solutions company in the United States, the United Kingdom, and internationally.
Market Cap
$797.8M
Pitch Price
$3.04
Price Target
30.00 (+900%)
Dividend
N/A
EV/EBITDA
11.70
P/E
-4.82
EV/Sales
1.48
Sector
IT Services
Category
turnaround
EP139: Hidden Earnings Power - Rackspace Technology, Inc.
RXT: Rackspace is a ~2%-sized, high-risk turnaround at $3.42, with a ~$900M market cap and $2.7B of net debt. The case rests on renewed Private Cloud growth, its Palantir partnership and a potentially transformative 30MW AMD deployment; Q2 2026 RPO rose 40% sequentially to $809M. Converting idle capacity and RPO into $500-$800M+ of run-rate EBITDA could support an $11-$15 stock, but weak liquidity, execution risk and dilution threaten the equity.
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