Rackspace Is Losing Altitude

Late Monday, Rackspace (RAX) reported its third straight disappointing quarter.

Rackspace has really come down from the clouds. In February, the company missed Street consensus expectations by a penny. Things only got worse by mid-April, when pricing pressure took a toll on second-quarter expectations. The stock lost altitude when Microsoft (MSFT) decided to slash the price of its Azure cloud service in an effort to better compete with Amazon's (AMZN) Web Services (AWS). When all was said and done, depending on the service, cloud pricing fell between 21% and 33%....282 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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