Rackspace Falls 5% Following Q1 Earnings

Rackspace has Investors fleeing in lieu of earnings reports release after market close. Rackspace RAX released a net income per share of $0.19 versus analyst estimates of $0.22 missing the mark. Net revenue missed as well with an earnings report of $480.2M versus analyst estimates of $518.95M. Rackspace has launched Private Cloud Powered by Red Hat. This expands Rackspace's portfolio and adds to the company's mantra for delivering the most "reliable and easy to use OpenStack private and hybrid clouds in the world." Rackspace continues to expand its grip on the cloud computing sector. Revenue has grown by 9.9% as compared to Q1 of 2015 as well as Net Income growing by 77.5% as compared to Q1 of 2015.