Rackspace Technology, Inc. (NASDAQ:RXT) is down 4% on Wednesday.

Rackspace Technology is set to report fourth-quarter earnings on Thursday. Analysts expect a loss of 1 cent per share on $672.56 million in revenue.

In the third quarter, the company reported a loss of 5 cents per share, in line with consensus estimates, while revenue of $671.20 million narrowly exceeded expectations of $666.83 million.

Over the past four quarters, Rackspace has averaged an earnings per share surprise of 0.24% and a revenue surprise of 0.01%.

Recent Catalyst

Last week, Rackspace announced a strategic partnership with Palantir Technologies, Inc. (NASDAQ:PLTR), targeting deployment of Palantir’s AI platform within Rackspace’s Private Cloud and UK Sovereign data centers.

Technical Analysis

Over the past year, Rackspace Technology has seen a significant decline of 43.41%. However, the stock is currently trading 103% above its 20-day SMA of 74 cents, 69.7% above its 50-day SMA of 89 cents, and 36.6% above its 100-day SMA of $1.11, showing a recent upward trend in its price relative to these averages.

The stock’s current price of $1.51 places it closer to its 52-week high of $2.89 than its 52-week low of 39 cents, suggesting some recovery from previous lows.

RXT Price Action: Rackspace Technology shares were down 4.45% at $1.39 at the time of publication on Wednesday, according to Benzinga Pro data.

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