Rackspace Drops 20 Percent as Sales Trail Analyst Estimates
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Rackspace Hosting Inc., the provider of Web-based computing, tumbled the most since its 2008 stock market debut after reporting revenue that trailed analysts’ estimates, fueling concern that growth may slow.
The stock plunged 20 percent to $60.30 at the close in New York. That’s the largest drop since Aug. 8, 2008, the day after the company’s initial public offering, when the percentage decline was about the same.