Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Did Rackspace Really Need a New Sales Executive?

Rackspace Hosting (NYSE: RAX  ) made an unexpected move last week when it hired Todd Cione to fill the newly created position of sales chief for the Americas.

It's not that Rackspace couldn't use a shot of adrenaline in the sales arm. The cloud computing leader's sales have lagged behind Street expectations in each of the last two quarters, leading to small but painful misses on the bottom line as well. As a direct result, the stock has missed out on this year's fantastic general market rally, losing about half its value year to date.

And there's nothing wrong with the talent Rackspace placed into this new position. Cione comes with 15 years of experience from highly responsible positions at Microsoft (NASDAQ: MSFT  ) , most recently as chief operating officer of Redmond's Asia/Pacific operations. It's a big-name hire that should result in crisper execution across Rackspace's pan-American sales operations.

But Fool contributor Anders Bylund might have expected this move from a different part of his personal portfolio, namely big data manipulator TIBCO Software (UNKNOWN: TIBX.DL  ) . In the video below, Anders explains why the Rackspace announcement took him by surprise -- even if it's probably the right thing to do.

The amount of data we store every year is growing by a mind-boggling 60% annually! To make sense of this trend and pick out a winner, The Motley Fool has compiled a new report called "The Only Stock You Need to Profit From the NEW Technology Revolution." The report highlights a company that has gained 300% since first recommended by Fool analysts but still has plenty of room left to run. To get instant access to the name of this company transforming the IT industry, click here -- it's free.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2505599, ~/Articles/ArticleHandler.aspx, 10/1/2016 7:00:21 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 9 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:02 PM
RAX $31.69 Up +0.20 +0.64%
Rackspace Hosting CAPS Rating: ***
MSFT $57.60 Up +0.20 +0.35%
Microsoft CAPS Rating: ****
TIBX.DL $0.00 Down +0.00 +0.00%
Tibco Software CAPS Rating: *****