Rackspace (RAX) Moves on Takeover Speculation, But Valuation Could Limit Buyers
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Rackspace Hosting (NYSE: RAX) is seeing upside Tuesday on renewed takeover speculation. AT&T (NYSE: T) has been mentioned as a possible suitor.
While Rackspace has been a fast growing cloud computing play, valuation at nearly 50x next year's numbers will likely give buyers pause.
Also, despite countless rumors over the past few years, the CEO insists the company is "not for sale."
Shares of Rackspace last traded at $54.04, up nearly 2 percent on the session.
While Rackspace has been a fast growing cloud computing play, valuation at nearly 50x next year's numbers will likely give buyers pause.
Also, despite countless rumors over the past few years, the CEO insists the company is "not for sale."
Shares of Rackspace last traded at $54.04, up nearly 2 percent on the session.
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