Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Rackspace Hosting (NYSE:RAX) jumped more than 20% Friday after the company stated it has hired Morgan Stanley to help it explore "inbound strategic proposals."

So what: Such a deal could include a partnership with or acquisition by a larger player looking to grow its cloud-computing presence. The news also arrives on the heels of Rackspace's better-than-expected Q1 results -- its first beat on both the top and bottom lines in three quarters, by the way -- and with which RackSpace CEO Graham Weston noted they added "thousands of new customers [...], including one of the largest we've ever landed."

Now what: With shares up nearly 40% since Monday, I certainly wouldn't blame investors for taking at least some of their chips off the table today. Deep in mind, however, shares are still down around 7% year to date, and a partnership could do wonders with regard to improving Rackspace's competitive position amid price wars in the cloud services industry. Long-term investors, then, might still have plenty to gain by holding on here.

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Steve Symington has no position in any stocks mentioned. The Motley Fool recommends Rackspace Hosting. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.