Photographic representation through Rafael Henrique / SOPA Images / LightRocket Getty Images
Rackspace rose 19% on the Monday after a Reuters report said Amazon had expressed interest in gaining a minority stake in the cloud provider.
Rackspace went public on August 5th after being acquired from a leveraged acquisition through Apollo Global Management in 2016.Apollo has remained the majority owner of Rackspace since the company went public this month.
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Rackspace is helping corporations migrate their knowledge to cloud platforms such as Amazon Web Services and Microsoft Azure. An Amazon investment would link the two corporations, which are already running in tandem in the cloud.
Amazon’s AWS cloud unit continues to enjoy rising demand, with second quarter gains of $10.81 billion, representing a 29% year-on-year expansion. Continued AWS expansion may be why Amazon needs to strengthen its links with Rackspace.
Rackspace reached an intraday high of $19.79 on Monday.
Market Insider