Shares of Rackspace Hosting (RAX) fell more than 24% Thursday, leaving essentially no investors who believe this is one of the best stocks to invest in now.
Yet the skeptics may be overreaching. Sure, Rackspace's revenue growth is slowing, but with gross margin rising, concerns over collateral damage caused by an ongoing cloud storage price war between Amazon.com (AMZN -1.14%) and Google (GOOGL 0.35%) are probably unjustified. In the video below, Fool contributor Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova addresses these concerns.
Rackspace is down 47% year to date despite notable progress in implementing its OpenStack infrastructure, which should help to produce higher margins and profits over time. It'll take awhile for the transition to take full effect, but when it does, look out above, Tim says.
Do you agree? Watch the video to get Tim's full take, and then let us know whether you think Rackspace Hosting is one of the best stocks to invest in now.
