Shares of Rackspace Hosting fell more than 24% Thursday, leaving essentially no investors who believe this is one of the best stocks to invest in now.
Yet the skeptics may be overreaching. Sure, Rackspace's revenue growth is slowing, but with gross margin rising, concerns over collateral damage caused by an ongoing cloud storage price war between Amazon.com and Google are probably unjustified. In the video below, Fool contributor Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova addresses these concerns.
Rackspace is down 47% year to date despite notable progress in implementing its OpenStack infrastructure, which should help to produce higher margins and profits over time. It'll take awhile for the transition to take full effect, but when it does, look out above, Tim says.
Do you agree? Watch the video to get Tim's full take, and then let us know whether you think Rackspace Hosting is one of the best stocks to invest in now.
The titans of tech
It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.
The article Is Rackspace Hosting Among the Best Stocks to Invest In Now? originally appeared on Fool.com.Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Google and Rackspace Hosting at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool recommends Amazon.com, Google, and Rackspace Hosting. The Motley Fool owns shares of Amazon.com and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.