|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
Baron Funds Comments on Rackspace Hosting
Posted by: guruhl (IP Logged)
Date: August 23, 2012 03:00PM
From Baron Funds' second quarter commentary:
Rackspace Hosting, Inc. (RAX) is a leading hosting and cloud computing service provider. Cloud computing describes a paradigm shift in the way IT infrastructure is built and consumed. Users can purchase only the computing, storage or networking capacity they need from a third party, paying for it monthly as a service, rather than buying and managing the equipment themselves – like we all pay the local utility only for the electricity we use rather than owning our own generators. Rackspace's business has been growing around 30%, and we expect it to grow 20-30% for many years to come. The stock pulled back because of increased investment spending and investor uncertainty around the company's rollout of its new cloud platform, OpenStack, which is set to go live on August 1st. We saw this as an opportunity to significantly increase our position.
Guru Discussed: Ron Baron: Current Portfolio, Stock Picks
Stocks Discussed: RAX,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.