Rackspace (RXT) Stock Increases Over 10% Following Amazon (AMZN) Stake Rumor

By Annie Baker ● August 17, 2020
  • Shares of Rackspace Technology Inc (NASDAQ: RXT) soared as high as 19% upon rumors that Amazon.com, Inc. (NASDAQ: AMZN) was looking into buying a minority stake in the cloud data company

Shares of Rackspace Technology Inc (NASDAQ: RXT) soared as high as 19% upon rumors that Amazon.com, Inc. (NASDAQ: AMZN) was looking into buying a minority stake in the cloud data company, according to Bloomberg. As of 10:10 AM on Monday August 17, the company’s stock price was at $16.69 and it closed at $18.31.

Bloomberg’s source asked to not be identified since the talks are private. The plans are not final and the deal could fall through.

Rackspace — which is a majority-owned by Apollo Global Management — is known as one of the pioneers of cloud computing and data storage rental. And Rackspace is often referred to as a competitor of Amazon’s rapidly growing Amazon Web Services operation.

Rackspace went public on August 5 and it raised $704 million in the process.