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Rackspace Partners with Palantir Amid Stock Surge

Bryce TuoheyAvatar
Written by Bryce Tuohey Reviewed by Tim Sykes Fact-checked by Matt Monaco
Updated 2/21/2026, 8:22 am ET 2/21/2026, 8:22 am ET | 5 min 5 min read
Rackspace Partners with Palantir Amid Stock Surge Thumbnail

Rackspace Technology Inc.’s stocks have been trading up by 41.08 percent, driven by positive market sentiment.

Technology industry expert:

Analyst sentiment – neutral

Rackspace Technology (RXT) finds itself in a challenging financial position according to its latest figures. The company’s profitability metrics highlight significant negative margins, including an EBIT margin of -5.6% and a pretax profit margin of -21%. This is exacerbated by a debt-heavy balance sheet with a concerning long-term debt burden of approximately $2.74 billion, contributing to a negative book value of shareholders’ equity. The recent income statement reports a net loss of $67.1 million, indicating that Rackspace is currently struggling to maintain profitability. Despite generating a substantial operating cash flow of $70.7 million, the company’s unsustainable financial leverage and limited profitability outlook present significant warnings for investors.

Technical analysis reveals that Rackspace’s recent price action showcases significant volatility with a noticeable uptrend. Weekly price patterns show a rally from a low of $0.419 to a high point of $1.7282. Such price movements suggest a potential bullish reversal possibly fueled by recent news catalysts. In terms of trading strategy, the sharp increase in recent sessions indicates an influx of buying pressure, with a crucial support level now established around $1.17. Given the volatility, traders might consider a momentum strategy, buying near the support and setting a stop-loss slightly below, targeting potential resistance around the $1.70 level for short-term gains.

Recent strategic developments, particularly the partnership with Palantir, could serve as potent catalysts for Rackspace Technology. This collaboration aims at leveraging Palantir’s Foundry and AI platforms to attract regulated industries, boosting Rackspace’s operational scope and market reach. The appointment of Joseph Vito as Senior Vice President underscores a strategic pivot towards strengthening alliances and enhancing customer value. Following these announcements, Rackspace’s stock experienced a dramatic surge, reflecting investor optimism. Compared to its industry benchmarks, Rackspace demonstrates dynamic responses to transformative strategies. Nonetheless, tight competition in the Technology and Software & IT Services sectors necessitates cautious optimism. Moving forward, critical price levels include resistance at $1.70 and support at $1.17.

Candlestick Chart

Weekly Update Feb 16 – Feb 20, 2026: On Saturday, February 21, 2026 Rackspace Technology Inc. stock [NASDAQ: RXT] is trending up by 41.08%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Quick Financial Overview

Rackspace Technology is experiencing dynamic changes precipitated by its recent collaboration with Palantir. Within this volatile environment, the company’s financial positioning reveals a mixed picture. On one hand, the recent daily closing chart demonstrated a volatile surge in February 2026, marked by an impressive leap from a close of $0.44 to a notable peak of $1.68, evidencing burgeoning investor confidence.

Despite the stock’s short-term price volatility, longer-term financial reports, reflecting a consistent revenue of $2.74B and operational challenges such as a negative operating income of $33.9M for Q3 2025, paint a complicated portrait. Key financial ratios reveal further insights; a troubling profit margin of -9.27% alongside a formidable gross margin of 19.3% showcasing struggles with profitability and efficiency. Operational cash flows, while positive and indicative of healthy liquidity, were surpassed by significant debt obligations revealing an underlying financial distress portrayed by a net income loss of $67.1M.

Rackspace’s position on valuations, particularly a price-to-sales ratio at a mere 0.11, may hint at an undervaluation opportunity for keen-eyed investors amid this partnership-fueled optimism. However, caution is warranted against the high leverage suggested by long-term debt overshadowing total equity, underscoring a critical balance between leveraging growth opportunities and managing financial risk in this turbulent yet promising period.

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Conclusion

In summary, Rackspace’s recent alignment with Palantir exudes possibilities of significant growth and market expansion, evidenced by the dramatic stock price increase. However, this promising upward trajectory exists alongside existing financial vulnerabilities, highlighted by ongoing profitability struggles and high leverage. This strategic partnership positions Rackspace at a pivotal junction; its success hinges on leveraging Palantir’s advanced capabilities to consolidate technical expertise, targeting regulated industries whilst shoring up its financial resilience to sustainably capture growth in the emerging AI-centric market landscape. Traders must, therefore, balance optimism with caution, as millionaire penny stock trader and teacher Tim Sykes says, “Consistency is key in trading; don’t let emotions dictate your trades.” As Rackspace seeks to realign its economic bearings amidst expanding operational horizons and escalating market expectations, this mindset will be crucial.

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.

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Bryce Tuohey

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
Bryce’s first pattern was buying into strength in breakouts. But he noticed when they didn’t work, he took bigger losses. When the OTC market got hot, Bryce learned to dip buy the inevitable panics. He adapted his breakout strategy and now buys consolidation and trend breaks. His goal is to have better risk/reward and get an entry before multi-day listed breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

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”