Oppenheimer Reviews Internet Services

Oppenheimer published its Internet Services Week in Review which included a preview of Rackspace's 3Q results
and Terremark's 3Q results.

Oppenheimer writes, "We expect Rackspace (NYSE: RAX) to report relatively healthy third-quarter results on Monday after the close. Our revenue forecast of $196M and adj. EBITDA forecast of $65M stand just below the Street ($198M and $66M), and our EPS of $0.08 stands a penny below consensus. Importantly, strong results reported by Terremark last week and Savvis the week prior suggest that trends within the SMB segment are at least stabilizing, which bodes well for installed base growth trends at Rackspace."

Rackspace is trading at $26.32.

Oppenheimer also published an overview of Terramark's (NASDAQ: TMRK) 3Q numbers.

Oppenheimer writes, "TMRK reported strong results across nearly every metric, with upside on the top and bottom lines. Importantly, these results, coupled with SVVS's strong 3Q report last week, suggest that enterprise spending on IT outsourcing remains healthy."

Terremark is trading at $11.70.