Home » Bear Case Scenario » Bear Case Scenario for Rackspace Hosting $RAX, $IBM, $HTHIY, $ACN, $INFY, $WIT

Bear Case Scenario for Rackspace Hosting $RAX, $IBM, $HTHIY, $ACN, $INFY, $WIT

Rackspace Hosting (Nasdaq:RAX) will be revealing earnings very soon. Follow this Bear Case Scenario as you ponder management comments.

The business is capital-intensive. Small capex pricing changes have huge impact on earnings.  The model is almost olde school regulated utility.

It’s all about the cloud. But what is the cloud. Will the model show itself soon so that we can execute. Risks in uncertainty. Why take them.

George Gutowski writes from a caveat emptor perspective.

Advertisements