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Rackspace Shares Lower as Analyst Says Customers Don't Love OpenStack

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Shares of Rackspace (NYSE: RAX) are continuing lower Thursday afternoon as Pacific Crest's Michael Brown issued some concerning comments on the company in a note from earlier.

The stock last traded at $34.39, down 1.3 percent from Wednesday's close. Rackspace shares fell more than 3 percent on Wednesday.

The analyst cited a recent CIO survey by Pacific Crest which showed end users seem to be moving away from Rackspace's OpenStack platform in favor of larger programs from the likes of HP (NYSE: HPQ) and IBM (NYSE: IBM). Brown noted it is still early in the cycle for the success of OpenStack.

Pacific Crest maintains a Sector Perform rating on shares of Rackspace.

Latest Ratings for RAX

DateFirmActionFromTo
Nov 2016TerminatesEqual-Weight
Aug 2016DowngradesMarket PerformUnderperform
Aug 2016DowngradesStrong BuyNeutral

View More Analyst Ratings for RAX
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