Rackspace Technology Inc (RXT) News & EventsRXTRackspace Technology Inc

BMO Capital Focuses on Rackspace's Enterprise AI Opportunity

BMO Capital says that while Rackspace's update last week brought a "meaningful reduction" to its fiscal 2026 guidance, the key takeaway is increased visibility into the company's enterprise AI opportunity. Rackspace issued a "more tangible" deployment roadmap with two megawatt of capacity expected by the end of 2026, the analyst tells investors in a research note. However, BMO is in "wait-and-see mode" on the shares given Rackspace's equity raise, higher spending, and execution needed for its deployment roadmap.

Major Averages Rebound as Oil Prices Retreat

The major averages finished broadly higher in a reversal of yesterday's losses as oil prices retreated from recent highs while investors assess the latest developments in the U.S.-Iran conflict and their potential impact on inflation and global growth.Although the U.S. launched another round of strikes against Iran and Tehran retaliated by targeting U.S. military facilities in Bahrain and Kuwait, investors appear encouraged by signs that neither side is seeking a prolonged disruption to energy markets. Oil prices retreated after an early spike, helping improve sentiment across equities and easing some concerns about another inflation shock.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:PepsiCoreportedand reiterated its FY26 EPS outlookLevi Straussprovided areport for Q2Rackspaceannounced anin production with Palantirand cut its FY26 revenue guidanceMetaintends to put an AI chip into production in September,Meanwhile, Meta is launching developer access to its Muse Spark AI model,2. WALL STREET CALLS:KeyBancSalesforceto Sector Weight, with firm saying it isn't seeing AOV growthMattelwasto Sell from Neutral at Goldman SachsAreteParamount Skydanceto Sell, calling the history of media mega-mergers "hardly inspiring"MizuhoFive Belowto Outperform following a 30% retreatToastwasto Buy at Goldman Sachs following underperformance3. AROUND THE WEB:A U.S. appeals court on Thursday upheld a ruling for AstraZenecaagainst allegations that its blockbuster lung-cancer drug Tagrisso infringed patents owned by Pfizersubsidiary Wyeth, Reuters reportsAmazonis advancing its Alexa AI capabilities through Project Moonraker, which aims to enable more complex multistep tasks, though development costs and reliability challenges remain key hurdles as the company expands Alexa+, Business Insider saysThe French competition authority said that its probe into Nvidiais nearing an end, Reuters reportsQiagenis drawing takeover interest from Advent and EQT, Bloomberg reportsSK Hynix'sU.S. listing is over seven times oversubscribed as the South Korean company gets ready to price its offering later this week, Bloomberg says4. MOVERS:Forte Biosciencesgained after announcing itsnLightwas higher after being awarded a $627M jointMara Holdingsincreased after announcing it willfrom HIF USAIoniswas lower after AstraZenecareported its CARDIO-TTRansform trialBellRing Brandsfell after naming5. EARNINGS/GUIDANCE:ASE Technology, with revenue higher year-over-yearSimply Good Foodsand raised its guidance for FY26Honeywellraised itsByrna Technologies, with CEO Conn Davis commenting that second quarter results "did not reflect the level of performance we believe Byrna can deliver"AZZand raised its guidance for FY27INDEXES:The Dow rose 139.02, or 0.27%, to 52,487.41, the Nasdaq gained 336.24, or 1.30%, to 26,206.89, and the S&P 500 advanced 60.93, or 0.81%, to 7,543.64.