Key insights
- Rackspace Technology (RXT) surged on news of an MOU with AMD for high-security infrastructure and progress towards profitability. A prior partnership with Palantir to accelerate AI platform delivery adds to the bullish sentiment. However, the AMD deal is only an MOU, suggesting the market impact may be limited until further developments.
After ripping 55% on Friday, RXT now trades at 0.56x annual sales, on news in their annual call about a new MOU with AMD for high security infrastructure, and near swing to profitability.
https://www.fool.com/investing/2026/05/07/rackspace-technology-stock-doubled-this-morning/
I take note of the fact that: it is only an MOU.
This on the back of PR about 3 month ago of a deal with Palantir to accelerate enterprise delivery of custom PLTR AI platforms.
https://www.rackspace.com/newsroom/strategic-partnership-palantir
I have seen the threads about demanding more from posts with respect to circle of expertise, DCF models, and so forth. For whatever it's worth, I feel grateful when anyone brings ideas to this forum in Good Faith - that's my style, and I like doing the homework.
Respect to all the mothers out there, too.