u/Wise-Shallot8683 ·
Reddit — r/ValueInvesting
· May 10, 2026 at 01:25
· ⬆ 15 pts
· 💬 8 comments
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AI Summary
Summary
The post highlights Rackspace Technology (RXT) after a 55% surge on news of a non-binding MOU with AMD for high-security infrastructure and a recent Palantir partnership, noting the stock trades at 0.56x sales.
Author presents a value-oriented homework post, acknowledging the MOU is only a preliminary agreement and encourages Good Faith discussion, but does not explicitly state a personal position.
Quality assessment: Speculation with some research – author cites two news sources (Motley Fool on AMD MOU, Rackspace’s own Palantir announcement) and a sales multiple, but lacks deep financial modeling or risk analysis.
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▶ Full Post Text
After ripping 55% on Friday, **RXT** now trades at 0.56x annual sales, on news in their annual call about a new MOU with AMD for high security infrastructure, and near swing to profitability.
[https://www.fool.com/investing/2026/05/07/rackspace-technology-stock-doubled-this-morning/](https://www.fool.com/investing/2026/05/07/rackspace-technology-stock-doubled-this-morning/)
I take note of the fact that: it is *only* an MOU.
This on the back of PR about 3 month ago of a deal with Palantir to accelerate enterprise delivery of custom PLTR AI platforms.
[https://www.rackspace.com/newsroom/strategic-partnership-palantir](https://www.rackspace.com/newsroom/strategic-partnership-palantir)
I have seen the threads about demanding more from posts with respect to circle of expertise, DCF models, and so forth. For whatever it's worth, I feel grateful when anyone brings ideas to this forum in Good Faith - that's my style, and I like doing the homework.
Respect to all the mothers out there, too.
RXT trades at 0.56x annual sales, has a new MOU with AMD and a prior Palantir partnership; margins near breakeven. The low revenue multiple and recent catalyst could attract value/special situation investors, but the MOU is non-binding and the stock already ripped +55%. Worth monitoring for a pullback or further confirmation (e.g., binding contract or profitability inflection), but no clear buy signal here. MOU falls through, Palantir deal fails to materialize revenue, margin improvement stalls, or stock momentum reverses.
This Reddit post, published May 10, 2026,
features u/Wise-Shallot8683
discussing RXT.
1 trade idea extracted by AI with direction and confidence scoring.