Rackspace Worth $1.1 Billion

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If you haven't heard - Rackspace went public last week. The company issued an initial public offering (IPO) of stock on August 8. The stock is listed on the NYSE under the symbol 'RAX'.

The current stock price of $10.09 yields a total market valuation for this hosting company of $1.1 billion.

Rackspace competes with such dedicated managed hosting companies as HostMySite.com, The Planet and iNETU.

So what does this indicate about the value of hosting companies in general?

Do you think Rackspace is really worth over $1 billion?

More importantly - is anyone thinking of buying this stock?