Diamonds and Dogs
Raxspace (RAX) racking up the gains. The cloud computing and hosted server solutions company jumped 12% thanks to better than expected earnings. Rackspace is carving out a niche in the evolving cloud computing world, where the company provides high-quality support and management services for cloud platforms sold by other companies. The company is very excited about the new products and partnerships that we've launched in recent months, with Amazon Web Services, Intel and Microsoft. With the healthcare sector losing its leadership role, it looks like tech is ready to take the baton.
Hercules Offshore (HERO) is no hero today. The offshore oil driller dropped 33% today after reporting a third quarter loss of $95.4 million while total revenues of $73.8 million failed to beat Zacks estimates of $102 million. Besides earnings, the company announced today that they have completed its financial restructuring and emerged from Chapter 11, and funding of the company's new $450 million senior secured credit facility. But if the company keeps losing $95 million a quarter how long before the Hercules is back in trouble?