Diamonds and Dogs

7/10/13

Rackspace Hosting Inc. (RAX)

Rackspace Hosting is falling from the cloud today, down 6.84% at $38.93. The cloud computing services company saw its shares fall after news that Amazon was cutting its cloud products by up to 80%! That's a large price cut, even by Amazon's standards; investors realize it will be difficult for other companies to compete with Amazon. Rackspace already faces stiff competition from Microsoft, Hewlett-Packard, IBM, and obviously Amazon. Rackspace investors are heading for the sidelines today as other cloud computing companies are looking more promising. Rackspace shares were able to hold up above their 52-week low of $33.91.

Nu Skin Enterprises Inc. (NUS)

Nu Skin Enterprises is trading higher today, up 19.21% at $79.36. The anti-aging personal care product company saw its shares bounce after raising its outlook for the quarter and full year. Nu Skin now expects 2nd quarter earnings of about $1.20 per share on revenue of around $680 million. Management's previous view was $0.91 to $0.95 per share on sales of $570 million to $580 million. Analysts forecast earnings of $0.96 per share on revenue of $578 million. Nu Skin also raised its expectations for 2013 earnings, to $4.85 to $5.00 per share from $4.18 to $4.30, and its revenue forecast to $2.83 billion to $2.86 billion from $2.51 billion to $2.54 billion. Analysts predicted $4.29 on revenue of $2.54 billion. Nu Skin shares hit a new 52-week high of $79.25 intraday.

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