Name: Rackspace shares sink 22% on first day of trading
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Rackspace shares sink 22% on first day of trading

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Shares of Rackspace Technology Inc.plunged 22% on their first day of trading Wednesday. Four years after it went private, Rackspace pricing of its initial public offering: 33.5 million shares of common stock at $21 per share. But investors turned up their noses, leaving the stock at $16.39 at the close of trading. "We're in the middle of a tectonic shift to multicloud technology," company Chief Executive Kevin Jones told MarketWatch in a Zoom interview early Wednesday. "It is the right place, right time for our transformation. We used to compete with hyper-scalers in cloud like AmazonGoogleand MicrosoftNow, we partner with them." Goldman Sachs &amp; Co. LLC, Citigroup Global Markets Inc., and J.P. Morgan Securities LLC are serving as joint lead book-running managers of the IPO. Rackspace was taken private by Apollo Global Management in a $4.3 billion acquisition in 2016. Last year, Rackspace reported revenue of $2.44 billion and a loss of $102.3 million, compared with $2.45 billion in revenue and a loss of $470.6 million in 2018.Some market watchers are nervous.SearchVisit a quote page and your recently viewed tickers will be displayed here.Search TickersNo results found

Shares of Rackspace Technology Inc.plunged 22% on their first day of trading Wednesday. Four years after it went private, Rackspace pricing of its initial public offering: 33.5 million shares of common stock at $21 per share. But investors turned up their noses, leaving the stock at $16.39 at the close of trading. "We're in the middle of a tectonic shift to multicloud technology," company Chief Executive Kevin Jones told MarketWatch in a Zoom interview early Wednesday. "It is the right place, right time for our transformation. We used to compete with hyper-scalers in cloud like...

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Jon Swartz

MarketWatch is a website that provides financial information, business news, analysis, and stock market data. Along with The Wall Street Journal and Barron's, it is a subsidiary of Dow Jones & Company, a property of News Corp. Notable contributors include Mark Hulbert and Francine McKenna.

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Rackspace shares sink 22% on first day of trading

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