Server hoster and cloud computing play Rackspace (NYSE:RAX) is a straightforward play on two of the biggest trends in IT today - cloud computing and big data. Unfortunately, the company has a valuation to match and it's joined the ranks of hot tech stocks. The question, then, is whether the company's service-oriented model can keep fostering the sort of growth it will take to not only stay ahead of rivals like Amazon (Nasdaq:AMZN) and Google (Nasdaq:GOOG), but to maintain those lofty premiums.
Really Nothing to Disappoint in Q4
To its credit, Rackspace did everything it needed to do in Q4 and then some. Revenue rose 32% when compared to last year and about 7% when compared to the third quarter. The monthly installed base rose a bit more than 1%, while the average per-user revenue rose more than 7%. The company's cloud services revenue rose 86% from last year.
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http://stocks.investopedia.com/stock-analysis/2012/Rackspace-Has-Already-Racked-Up-A-Demanding-Valuation-RAX-AMZN-GOOG-HPQ-MSFT0216.aspx
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