Rackspace Technology (RXT) Shares Soar 8.15% After Hitting 2023 Low

Rackspace Technology (RXT) shares surged by 8.15% today, marking a significant rebound after hitting its lowest level since December 2023, with an intraday decline of 3.70%.

One of the key factors influencing Rackspace Technology's stock price is the level of short selling activity. As of April 3, 2025, 5.7% of the company's shares are sold short, indicating a notable level of bearish sentiment in the market. This high short interest could be contributing to the volatility in RXT's stock price, as short sellers bet against the company's future performance.

Another significant development is the appointment of KPMG as Rackspace Technology's new auditor on March 29, 2025. This change in auditing firm could influence investor perception regarding the company's financial transparency and governance. Investors often view changes in auditors as a potential indicator of underlying issues or a strategic move to enhance financial reporting, which can impact stock prices.

Additionally, a recent stock forecast suggests that RXT's stock is expected to fall by 34.10% over the next three months, with a 90% probability of holding a price between $0.777 and a higher unspecified amount. This prediction may impact investor expectations and market behavior, potentially leading to increased selling pressure or cautious trading.