60x EPS and zero free cash flow - why would anyone buy this stock? There's revenue growth, but it is all funded by huge capex spending. This looks like a $5 stock even if you put an aggressive 20x multiple.
You need to understand how these businesses work. RAX near-term earnings are depressed because they are investing in infrastructure for future growth. If they stopped investing, they could create huge cash flow and much higher EPS with existing servers, but there would be no future revenue growth. So they are spending today to earn tomorrow. This business is a HUGE cash generator.
Yada, yada, yada. That's what they say about every business that keeps burning cash and finally goes bankrupt. Every good business invests in growth too, but still manages to generate cash. RIMM is growing at 40%, but still generates cash. And look at the way RAX's share count is growing. If they finally do start generating any cash, they will have double the number of current shares.