Diamonds and Dogs

5/12/15

Ocean Rig UDW Inc. (ORIG)

Ocean Rig is making a splash today, up 14.63% to $8.83. The offshore drilling company saw its shares rally after better than expected earnings. For the quarter, Ocean Rig announced a net income of $41 million and a profit of $0.31 per share after announcing a loss for the same period last year. Analysts' were expecting the company to post a loss of $0.05 per share this quarter. Shares of Ocean Rig rallied over a $1.00 today but are significantly off of their 52-week high of $19.97.

Rackspace Hosting Inc. (RAX)

Rackspace Hosting is falling from the cloud today, down 13.87% to $45.76. The cloud computing company saw its shares fall after being downgraded by Morgan Stanley after less than stellar earnings. Rackspace reported revenue of $480.2 million, up 14.1% from the year-ago quarter, but below analysts' estimates of $481.57 million. Earnings per share was $0.20 which was in-line with Wall Street's view. The miss of earnings spurred Morgan Stanley to downgrade the company from "overweight" to "equal-weight." Shares of Rackspace dropped over $7.30 today but never came near their 52-week low of $28.16.