10 Most Volatile Stocks Under $3 For Day Trading

6. Rackspace Technology, Inc. (NASDAQ:RXT)

Number of Hedge Fund Holders: 15

Rackspace Technology, Inc. (NASDAQ:RXT) is a multi-cloud solutions provider offering managed services, consulting, and cloud infrastructure optimization. It helps businesses design, migrate, manage, and secure workloads across public, private, and hybrid cloud environments, partnering with major cloud providers like AWS, Microsoft Azure, and Google Cloud. The company serves enterprises across various industries, focusing on cost efficiency, security, and scalability. Its revenue comes from cloud management, professional services, and recurring subscription-based solutions. RXT also provides AI, data analytics, and cybersecurity services to enhance digital transformation for its clients.

Rackspace Technology, Inc. (NASDAQ:RXT) delivered strong Q4 2024 results, exceeding guidance for revenue, profit, and EPS, marking the tenth consecutive quarter of meeting or beating expectations. The company achieved record-breaking quarterly sales bookings, reaching the highest level since early 2023. Full-year sales bookings grew by 14%, driven by strong performance in the Americas and increasing adoption of hybrid cloud solutions across multiple industries. In the Private Cloud segment, Q4 2024 was a record sales bookings quarter, with bookings more than doubling sequentially and showing high double-digit YoY growth. The Public Cloud segment demonstrated robust performance with GAAP revenue of $417 million, surpassing the guided range due to increased cloud consumption.

Rackspace Technology, Inc. (NASDAQ:RXT) made significant progress in AI initiatives, with more than 50 customers and close to 200 opportunities in the pipeline at various stages. Looking ahead to 2025, management expects positive operating cash flow and free cash flow, supported by operating profit growth in low double digits, mainly driven by margin improvements and ongoing efficiency enhancements. The company’s strategic focus remains on three key priorities: operational turnaround progress, positioning as an innovative hybrid cloud and AI solutions company, and improving capital structure to support sustainable profitable growth. With an equity beta of 2.03, RXT is one of the most volatile stocks under $3 for day trading.