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Rackspace shares surge on report that Amazon is in talks to invest in company

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Reuters reported Monday that Amazon is interested in acquiring a minority stake in Rackspace, which helps companies shift their data to Amazon Web Services.

Trading was briefly halted due to volatility after theThe Reuters report said that Amazon is interested in acquiring a minority stake in Rackspace, which helps companies shift their data to Amazon Web Services .

Rackspace held its IPO earlier this month. Private equity firm Apollo Global Management is the majority owner of Rackspace.Spokespeople for Amazon, Rackspace and Apollo did not immediately respond to a request for comment.

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