Buy Rackspace Technologies (RXT) ahead of tomorrows earnings
See my previous DD's for plays on PLTR, Chegg, and UAA (my backup account – I got banned for saying "retard" and "autistic" on another subreddit. Also made a post on ENPH but but I think it w I guess I spend too much time on this sub. Anyways…
If you want a virgin ripe-for-taking play this week for earnings, i suggest you take a look into Rackspace. Here's my depiction:
What the fuck is Rackspace?
- Rackspace is a cloud services provider that helps companies port data to Amazon Web Services, and also provides infrastructure management and managed application services.
- Rackspace helps Amazon and Google Cloud, Microsoft Azure, VMWare, among others to move data around.1
- Rackspace was once a public company in 2008, but went private in 2016. They IPO'd again in 2020.2
- Changed their business model from competing with AWS, GOOG, and MSFT to working with and enabling them 3
Why The Fuck Should I Buy Shares or Calls?
- Rackspace is one of the few companies in the cloud space that haven't mooned since covid began
- Compare charts to SNOW, DDOG, NET, etc.
- Currently trades less than 70% it's actual value when compared to stocks in the same sector (see Seeking Alpha: Rackspace Technologies: 70% Upside Is Just The Start)
- AWS, GOOG, MSFT have performed remarkedly since the pandemic has began – a direct beneficiary – you guessed it, RXT.
- Bookings take 2-3 quarters to have profit realized (now and beyond) (see Seeking Alpha: Rackspace Technologies: 70% Upside Is Just The Start)
- Insititutions have been quitely purchased millions in stock5
Why shouldn't I buy rackspace?
Debt. 3.9 billion to be exact. yes, this is a lot. however, during the last ER, the CEO and CFO reiterated intentions to reducing this debt. i believe it is the ony reason this stock hasn't mooned like DDOG. with customers like amazon, microsoft, google, among others, i believe this company posts record revenue, as have many other cloud companies, and decreases debt substantially. This is a rocket ship folks.
Positions: 12/18 17.5C
Submitted November 10, 2020 at 07:48AM by natelifts
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