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Rackspace Hosting (RAX) Falls: Stock Goes Down 5.8% - Tale of the Tape

Rackspace Hosting, Inc. ( RAX ) saw a big move in the last trading session, as the company's shares fell by nearly 6% on the day. The move came on pretty good volume too with far more shares changing hands than in a normal session. This breaks the recent trend of the company, as RAX is now trading below the volatile price range of $29.75 to $32.15 in the past one-month time frame.

This slump shouldn't be too much of a surprise to investors, as the company, which provides cloud computing services and managing Web-based IT systems, has seen 1 negative revision in the past few weeks and its current year earnings consensus has also moved lower over the last 30 days. This suggests there may be more trouble down the road. So make sure to keep an eye on this stock going forward to see if this recent slump will continue, as the earnings picture definitely suggests that this might be the case.

RAX currently holds a Zacks Rank #3 (Hold).

Investors interested in the Internet Services industry may consider better-ranked stocks like Baidu, Inc. ( BIDU ), Facebook, Inc. ( FB ) and Borderfree, Inc. ( BRDR ), each of which holds a Zacks Rank #2 (Buy).

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

RACKSPACE HOSTG (RAX): Free Stock Analysis Report

BAIDU INC (BIDU): Free Stock Analysis Report

FACEBOOK INC-A (FB): Free Stock Analysis Report

BORDERFREE INC (BRDR): Get Free Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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