Rackspace IPO on Friday August 8th

Discussion in 'Stocks' started by birdman, Aug 7, 2008.

  1. birdman


    Rackspace has been profitable for 5 consecutive years and has a pretty good reputation in the industry.

    They begin trading tomorrow as RAX

    I won't be buying but I'll be watching it over the next few months as i work in this industry and find it interesting.

    I don't know about their expansion plans nor management but it's a good field to be in and they've done well thus far.
  2. RAX reamed.

    nice open at <10 off a 12 ipo price.
  3. I've used Rackspace web hosting services for years - they offer a premium product selection with excellent service. Their Mosso cloud hosting is on the bleeding edge and not reliable enough for business hosting, but offers a glimpse of the future web hosting opportunity.
  4. Short it. While rackspace in the past has been known for expensive, managed services, more stories are coming to light that their support is going down the tubes. I've heard more people tell me they came from rackspace over the past 12 months then in the past 7 years.
  5. lol.

    Mosso has been around for years and STILL doesn't work correctly. Bleeding edge? What business wants to bleed??

    Rackspace is going to be delisted before year-end.
  6. The theory behind cloud or grid hosting, such as Mosso or Media Temple, is great - no ceiling on bandwidth or processing power. The problem is that the server processes/applications haven't caught up yet to make it functional and reliable enough.

    I've tried to use Mosso for over a year now and they've had the same core reliability issues from day one.
  7. TYtrader


    you would think on a day when the Dow rallies 300 points an IPO would do a little better. still a poor IPO market I guess. Or, maybe this company just isn't a good investment. I don't know, maybe one or both. here's an article about it

  8. Hosting is a dying industry!

    Too competetive and the profit margins are shrinking by the day.

    Stay away from it!
  9. as a matter of fact thanks for mentioning it.
    I will short a good 1000 shares monday morning :)
  10. segv


    Hosting is a growing industry, and it will continue to be for many more years. That being said, rackspace charges too much for what they are, and they are about 5 years behind current trends in the market.
    #10     Aug 9, 2008