-10%

est. 2Y upside i

DevOps & Infra

Rank

#2533

Sector

Cloud Computing / IT Services

Est. Liquidity

~3Y

Data Quality

Data: Medium

Given the negative expected upside (-10%) and high probability of bear case (55%), this equity grant carries substantial downside risk.

Last updated: July 3, 2026

Bull (15%)+70%

Cloud infrastructure deal with AMD and potential IT spending rebound could boost revenue; exit multiple expands to 1.2x, yielding +90% gross upside, net 70% after 20pp dilution.

Base (30%)+7%

Revenue stabilizes at ~$2.58B; exit multiple converges to 0.8x (comp low end), yielding +26.6% gross upside, net 7% after dilution.

Bear (55%)-41%

Competitive pressure from hyperscalers continues, revenue declines further; exit multiple compresses to 0.5x, yielding -20.9% gross, net -41% after dilution; high debt refinancing risk.

Est. time to liquidity~3.0 years

Preference Stack Risk

severe

Funding Intensity

44%

Total funding of $721M represents 44% of current valuation, creating a severe preference overhang that reduces common stock proceeds in exits below $1.45B.

Dilution Risk

high

Given $2.48B debt maturing 2028 and CCC+ rating, a dilutive equity or convertible raise is probable within 2 years.

Secondary Liquidity

none

No secondary market activity detected; liquidity likely only via IPO or acquisition.

Private Cloud - Delivery — 13 roles

Private Cloud - INTL Sales and Field Marketing — 6 roles

Private Cloud - Americas Healthcare and Tech — 4 roles

Private Cloud - Commercial — 2 roles

Public Cloud - COO — 2 roles

Private Cloud - Americas Financial Services — 1 role

Private Cloud - Enterprise and Marketing — 1 role

Private Cloud - INTL COO — 1 role

Private Cloud - Leadership — 1 role

Public Cloud - Americas GTM — 1 role

Public Cloud - AWS Business Development — 1 role

Public Cloud - Leadership — 1 role

Public Cloud – Sales Executives — 1 role

View all 76 open roles at Rackspace →

Last updated: March 10, 2026

Questions to Ask at the Interview

Strategic questions based on Rackspace's data — designed to show you've done your homework.

  • 1

    “How would you drive revenue growth in the face of hyperscale competition?”

  • 2

    “What is our strategy to reduce debt and improve credit rating?”

  • 3

    “How does the AMD deal fit into the broader go-to-market strategy?”

Community

Valuation Sentiment

Our model estimates -10% upside. What do you think?

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Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.