Rackspace stock falls after company discloses ‘security incident’

Shares of Rackspace Technology Inc. were off 8% in Monday morning trading as the cloud-computing company continued to provide information about a security issue that has impacted the company’s Hosted Exchange environment. Rackspace disclosed early Saturday that it proactively powered down that environment after discovering an issue, which it determined to be a “security incident.” In an update posted to the company’s status page early Monday, Rackspace said that it “successfully restored email services to thousands of customers on Microsoft 365 and continue to make progress on restoring email service to every affected customer.” Shares have lost two thirds of their value over the past 12 months, as the S&P 500 has fallen 11%.

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