Sep. 25 at 4:33 PM
$RXT I'm looking for thoughts on why Rack is not moving significantly higher. With a market cap around
$341M, it seems like the company is underdelivering. When looking at the
$4.3 billion buyout in 2016, the stock would have been valued at
$17 or roughly
$24 adjusted for inflation today.
I understand the financials are poor and it's carrying around
$3.3B in debt. But...
Rack must have access to electricity, potentially one of its biggest assets, especially with data center power at a premium right now. That alone should be a major driver for the stock.
With CoreWeave, Core Scientific, and other "data center players" are signing billion-dollar deals. I’ve even heard that some data centers are running on generators to meet demands.
Thanks in advance for your insights.