Rackspace Technology Inc. (NASDAQ:RXT) is one of the worst-performing data center stocks in 2025. At the top of our list, Rackspace’s stock has declined by over 45% over the last year, and 2025 hasn’t been much different so far. The company has faced several challenges lately, including slowing growth, mounting losses, a lack of transformational deals, and significant leverage.
The company is making efforts to stabilize its private cloud revenue and expand its presence in mid-market and enterprise segments. While there have been improvements in some metrics and cash flow generation, the company will need to execute its strategy strongly to regain investor confidence.
On the positive side, the company appointed Gajen Kandiah as Chief Executive Officer on September 3. He has replaced Mr. Amar Maletira, who will continue with the company as the Vice Chairman of the Board. Gajen is expected to lead the company’s AI-first multi-cloud strategy, with his deep expertise across services, infrastructure, software, and AI.
Moreover, on September 12, the company announced that it had achieved the Amazon Web Services (AWS) Automotive Competency. This designation denotes its expertise in accelerating the digital transformation on AWS for automotive companies and their suppliers.
Rackspace Technology Inc. (NASDAQ:RXT) is a global cloud and IT services company specializing in multi-cloud solutions, managed hosting, and data center infrastructure. It helps enterprises modernize across AWS, Azure, Google Cloud, and private platforms.
While we acknowledge the potential of RXT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: Goldman Sachs Value Stocks: 10 Stocks to Buy and 14 Best Precious Metals Stocks to Buy Now.
Disclosure: None. This article is originally published at Insider Monkey.
