Buy Rackspace Technologies (RXT) ahead of tomorrows earnings via /r/wallstreetbets #stocks #wallstreetbets #investing

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
via reddit