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To: The Ox who wrote (2278)	7/10/2013 1:47:32 PM
From: The Ox	Respond to of 8255

Shares of Rackspace (NYSE: RAX) declined on Wednesday after Amazon Web Services, a competitor, lowered prices on its cloud offering. Headlines suggest cuts of up to 80%. Commenting, Wells Fargo analyst Gray Powell said, "We believe there is a lot of noise here and that if investors dissect pricing, the cuts appear to be more inline with AWS's normal course of business . . .We stress that AWS is mainly cutting upfront type fees. The more important recurring price cut is on the dedicated ondemand instance, which looks more like a normal AWS price cut." "BOTTOM LINE With RAX down 4.6% (vs Nasdaq +0.2%) investors are clearly concerned about cloud pricing. That said, Amazon's move today looks more like the playbook they have run over the past few years than any meaningful change in the pricing strategy." Wells Fargo has an Outperform rating on Rackspace.