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RXT Stock Surges As AMD AI Cloud Deal Ignites Turnaround Hopes

JACK KELLOGG•UPDATED MAY. 28, 2026, 11:33 AM ET
Reviewed by Ellis Hobbsand Fact-checked by Matt Monaco

Rackspace Technology Inc. stocks have been trading up by 13.39 percent amid bullish sentiment on its evolving cloud services strategy.

Candlestick Chart

Live Update At 11:32:46 EDT: On Thursday, May 28, 2026 Rackspace Technology Inc. stock [NASDAQ: RXT] is trending up by 13.39%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

RXT has turned into a momentum playground. Over the past few sessions, Rackspace Technology Inc. has run from the low $2s in mid-May 2026 to trading in the mid-$5s as of 2026/05/28. That is more than a double in a couple of weeks, powered by earnings, AI headlines, and heavy short-covering-style action.

The latest quarter showed why traders suddenly care again. RXT posted Q1 revenue of $678.1M and reported EPS of $0.03 in its financials, but the news stream frames the quarter as an adjusted loss of -$0.06 versus expectations for a -$0.09 loss on about $660.8M of revenue. In plain English: still losing money, but losing less than the crowd expected and bringing in slightly more sales.

On the chart, RXT has been a rollercoaster. The daily candles show violent ranges, with spikes above $7.30 on 2026/05/15 and deep pullbacks back under $5 shortly after. Intraday on 2026/05/28, the 5-minute chart shows a tight grind from roughly $4.60 at the open toward $5.30, with higher lows holding all morning. For short-term traders, that intraday trend and liquidity matter more than the headline EPS number.

Why Traders Are Watching RXT’s AI Pivot

What really changed the story for RXT was not just a small earnings beat. It was the multiyear memorandum of understanding with AMD to build a managed Enterprise AI Cloud. Rackspace Technology Inc. wants to be the single accountable operator of an AI stack built on AMD GPUs and CPUs, aimed squarely at regulated and sovereign workloads. That is a very specific niche, and traders love a tight story they can understand.

In a crowded cloud market, RXT is trying to reposition itself as the “go-to” AI infrastructure partner for banks, governments, and other entities that cannot just toss sensitive data into any generic public cloud. The AMD MoU gives Rackspace Technology Inc. a brand-name partner and a clear angle: governed AI, not just generic compute. For momentum traders, that narrative can be just as powerful as current revenue.

The market reaction shows how quickly sentiment flipped. After earnings and the AI announcements, RXT shares spiked 64% to $3.72, then kept climbing on follow-through days, tagging the $7s before pulling back. That type of move screams volatility, but it also tells you that a lot of traders were offside.

Analysts are starting to acknowledge the shift. BMO Capital raised its RXT price target from $2 to $5 and highlighted the AMD tie-up plus a strategy of partnering with top AI vendors. UBS followed with its own hike to $5 and a Neutral view. The consensus price target around $4.17 and mostly Hold ratings signal that Wall Street sees upside, but is not fully bought in yet. For active traders, that gap between price and cautious sentiment is where big swings often live.

More Breaking News

Conclusion

Under the hood, RXT is still a turnaround. Management reaffirmed a FY26 outlook that calls for continued losses, with EPS guided to a -$0.20 to -$0.15 range, versus a much smaller consensus loss. At the same time, Rackspace Technology Inc. is targeting $2.6B–$2.7B in revenue and adjusted EBITDA of $305M–$315M. Translation: management wants to grow the top line and cash earnings, even if GAAP profits lag.

Balance sheet numbers show why traders should respect the risk. RXT carries more than $3.0B of long-term debt against total assets of about $2.77B and negative equity. Margins remain thin, with only about 18.5% gross margin and a long history of negative returns on assets. This is not a safe, steady compounder; it is a leveraged name tied to execution on a new AI strategy.

Recent insider or major-holder activity in a Form 4 filing adds another data point, but without context it is just a reminder that the people closest to RXT are still actively trading the name.

For active traders, the setup is clear: high volatility, a fresh AI story, and a Street that is warming up but far from euphoric. As Tim Sykes likes to say, “I don’t care about the story unless the chart confirms it.” As millionaire penny stock trader and teacher Tim Sykes, says, “Cut losses quickly, let profits ride, and don’t overtrade.”. With Rackspace Technology Inc., the chart is loud, the story is hot, and discipline—especially cutting losses fast—matters more than ever. This analysis is for educational and research purposes only, not investment advice.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

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The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”