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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 (NYSE: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 (AMEX:IYW), in which they are a combined 1.36% of the total fund.

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