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Rackspace Takes $1 Billion Stock Hit on Sales Forecast

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Rackspace Hosting Inc., the cloud-computing and website hosting company, fell the most in eight months after releasing a sales outlook that was below analysts’ estimates.

Rackspace, which counts companies from Tinder Inc. to Domino’s Pizza Inc. as customers, dropped 14 percent to $45.96 at the close in New York, wiping out more than $1 billion in market value. The stock has fallen 1.8 percent so far this year. Rackspace posted first quarter earnings after the close yesterday that beat analysts’ estimates, while sales narrowly missed projections.