Why You Should Love Rackspace's Results

By Tim Beyers – Nov 9, 2012 at 12:37PM

NYSE: RAX

Rackspace Hosting, Inc.

Strong growth isn’t easy to come by during a transition

For much of the year, Rackspace Hosting (RAX) has been one of 2012's big winners . Not this week. On Tuesday, the company reported revenue and earnings that met Street estimates, yet the stock is down nearly 7% over the past two days alone. Have investors forgotten how big a transformation the company is undergoing? A broad-based move to an open source infrastructure based on OpenStack could take profits to new heights in the years ahead. Find out more in the video below.

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 Rackspace Hosting at the time of publication. He also had a long-term call options position in Netflix. Check out Tim's web home, portfolio holdings and Foolish writings, 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.

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