Investors are now looking to take advantage of Rackspace Hosting Inc. as its cloud computing investments have now begun to pay off.
Earnings for the company are currently predicted to grow by a massive 45% in the next year. In the long term, Rackspace is beating industry averages as it’s expected to have an earnings growth rate of 34% over the next five years. This news has been reflected in its share prices as it’s now up by 50%.
The main reason why investors are considering Rackspace to be such a profitable option is the impact of cloud technology. The company has placed a lot of faith in the technology and has made significant investments. As the amount invested has increased so has the demand. Better results are being afforded to investors as a result of this beautiful combination of rapid growth and rapid demand.
Further positive news comes from the company’s decision to expand internationally, with the recent announcement that it would open a data centre in Australia as an example.
Past results are also a cause for celebration for investors. Figures outlined above are merely estimations, but if history proves true again then the webhosting giant will outperform them. Frequently it has outdone its expected rating and there looks to be no stopping the company as investments continue.
Rackspace has been in the news regularly as it recently joined a coalition of companies via the OpenStack Foundation. It continues to demonstrate Rackspace’s commitment to the future, and it’s why investors are being advised to invest in Rackspace stock as soon as possible for a long term gain before the prices become too high to make a worthwhile profit.
Regardless of when investors enter the market, Rackspace is expected to become one of the most successful entities in the IT industry.