10 Best Performing Data Center Stocks So Far in 2025

5. Rackspace Technology Inc. (NASDAQ:RXT)

YTD Returns: 31.2%

Number of Hedge Fund Holders: 15

Rackspace Technology Inc. (NASDAQ:RXT) offers a comprehensive suite of management and support services across private, hybrid, and hyperscale public cloud environments. Its portfolio includes application services, data management, colocation, managed hosting, professional services, and security and compliance solutions. The company operates 40 colocation data centers strategically positioned in key global markets.

On February 20, Rackspace Technology Inc. (NASDAQ:RXT) reported its Q4 2024 earnings, which were largely in line with market expectations. Revenue for the quarter declined 5% year-over-year (YoY) to $686 million, with decreases in both Public and Private Cloud segments. Operating profit also fell 13% YoY to $39 million, though the net loss per share improved to $0.02 from $0.04 in the prior-year period. Management highlighted strong sales execution, leading to a 14% YoY increase in FY 2024 bookings. While the company continues to face growth challenges, it is prioritizing higher-margin cloud and infrastructure services, leveraging its expertise in AWS, Google Cloud, and Microsoft Azure to drive long-term revenue expansion.

Rackspace Technology Inc. (NASDAQ:RXT) has delivered strong share price performance YTD, rising over 31% in 2025. On February 21, an Evercore ISI analyst maintained a Hold rating with a $3 price target, aligning with the current consensus estimate, which suggests only a 3.5% potential upside.