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Feb 18, 2026 12:10 PM

Rackspace Soars on Palantir Deal: Will the Hail Mary Save the Stock?

In what could be described as a "Hail Mary" for a company currently treading water at penny-stock levels, Rackspace Technology, Inc. (NASDAQ:RXT) announced a strategic partnership Wednesday with data-giant Palantir Technologies, Inc. (NASDAQ:PLTR). 

RXT stock is soaring. See the chart and price action here. 

The move, designed to accelerate the deployment of Palantir's Foundry and Artificial Intelligence Platform (AIP), sent Rackspace shares into a triple-digit rally. 

But beneath the AI-powered press release lies a sobering reality: Rackspace is desperately in need of a lifeline.

A Partnership of Necessity

The deal positions Rackspace as a strategic partner for data migration and global implementation services. 

According to the release, Rackspace will host Palantir's software within its Private Cloud and UK Sovereign data centers, targeting highly regulated industries that remain wary of the public ...