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No. of Recommendations: 0

Rackspace's fourth-quarter profit managed to meet estimates, but a small miss on the top line -- revenue of $353 million versus the consensus of $355.4 million -- reinforces serious concerns over slowing demand. Management blamed the slowdown on its transition to the next-generation cloud, but given that it is the fifth straight quarter in which growth has slowed, investors just aren't buying it. From http://www.fool.com/investing/general/2013/02/13/why-rackspace-shares-got-crushed.aspx?source=itxsitmot0000001&lidx=9

As Russ said it could be a great opportunity to buy more if you believe in management or it could signal a slowing of momentum. That is always a danger when owning high PE momentum stocks, once they start missing they get pummeled hard.

Since I don't really follow the company I am reluctant to give a buy or sell recommendation.

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