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Dell Makes Cloud Computing Acquisition

By Market News Video Staff, Tuesday, November 2, 1:16 PM ET
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Dell (DELL) CEO Michael Dell said today the company is poised to make an acquisition in the cloud computing sector.

Market speculation was that Rackspace Hosting (RAX) would be the target, and shares of the stock were trading higher by as much as 10% on the news. Rackspace is 2% of the NASDAQ Internet Portfolio (NASDAQ:PNQI), which is trading up 1.35% today. However, after the anticipation, Dell announced that the are buying Boomi, which is a private company.

Dell, which is trading up 0.35%, and Rackspace share membership in several tech ETFs, such as the iShares Dow Jones U.S. Technology Sector Index Fund (NYSE:IYW), in which they are a combined 1.36% of the total fund.

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