Bulletin
Investor Alert

London Markets Open in:

Market Pulse Archives

Aug. 5, 2020, 6:17 p.m. EDT

Rackspace shares sink 22% on first day of trading

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Rackspace Technology Inc. (RXT)
  • X
    Amazon.com Inc. (AMZN)
  • X
    Alphabet Inc. Cl A (GOOGL)

or Cancel Already have a watchlist? Log In

By Jon Swartz

Shares of Rackspace Technology Inc. /zigman2/quotes/219801308/composite RXT +0.55% plunged 22% on their first day of trading Wednesday. Four years after it went private, Rackspace announced pricing of its initial public offering: 33.5 million shares of common stock at $21 per share. But investors turned up their noses, leaving the stock at $16.39 at the close of trading. "We're in the middle of a tectonic shift to multicloud technology," company Chief Executive Kevin Jones told MarketWatch in a Zoom interview early Wednesday. "It is the right place, right time for our transformation. We used to compete with hyper-scalers in cloud like Amazon /zigman2/quotes/210331248/composite AMZN +0.19% , Google /zigman2/quotes/202490156/composite GOOGL -1.44% /zigman2/quotes/205453964/composite GOOG -1.97% , and Microsoft /zigman2/quotes/207732364/composite MSFT +1.07% . Now, we partner with them." Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., and J.P. Morgan Securities LLC are serving as joint lead book-running managers of the IPO. Rackspace was taken private by Apollo Global Management in a $4.3 billion acquisition in 2016. Last year, Rackspace reported revenue of $2.44 billion and a loss of $102.3 million, compared with $2.45 billion in revenue and a loss of $470.6 million in 2018.

/zigman2/quotes/219801308/composite
US : U.S.: Nasdaq
$ 18.34
+0.10 +0.55%
Volume: 1.15M
Sept. 21, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.63 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 2,960.47
+5.56 +0.19%
Volume: 6.12M
Sept. 21, 2020 4:00p
P/E Ratio
113.79
Dividend Yield
N/A
Market Cap
$1480.08 billion
Rev. per Employee
$359,671
loading...
/zigman2/quotes/202490156/composite
US : U.S.: Nasdaq
$ 1,430.14
-20.95 -1.44%
Volume: 2.85M
Sept. 21, 2020 4:00p
P/E Ratio
31.90
Dividend Yield
N/A
Market Cap
$989.95 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/205453964/composite
US : U.S.: Nasdaq
$ 1,431.16
-28.83 -1.97%
Volume: 2.89M
Sept. 21, 2020 4:00p
P/E Ratio
31.92
Dividend Yield
N/A
Market Cap
$989.95 billion
Rev. per Employee
$1.39M
loading...
/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 202.54
+2.15 +1.07%
Volume: 39.84M
Sept. 21, 2020 4:00p
P/E Ratio
35.16
Dividend Yield
1.11%
Market Cap
$1516.48 billion
Rev. per Employee
$902,473
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.