GoDaddy
GDDY
$87.87
+1.13%
GoDaddy Inc provides digital solutions and services for entrepreneurs, small businesses, individuals, organizations, developers, designers, and domain investors through an integrated service platform. It operates as a leading player in the domain registration and web hosting market, with a distinct competitive identity as a one-stop shop for online presence and commerce tools. The current investor narrative centers on GoDaddy's transformation into a higher-margin, AI-driven platform, with recent news highlighting a hidden value opportunity driven by aggressive share buybacks, strong free cash flow, and a valuation near 10-year lows, despite a steep 49.5% one-year price decline.…
GDDY
GoDaddy
$87.87
Related headlines
GDDY 12-Month Price Forecast
Wall Street consensus
Most Wall Street analysts maintain a constructive view on GoDaddy's 12-month outlook, with a consensus price target around $114.23 and implied upside of +30.0% versus the current price.
Average Target
$114.23
4 analysts
Implied Upside
+30.0%
vs. current price
Analyst Count
4
covering this stock
Price Range
$70 - $114
Analyst target range
Analyst coverage is limited, with only 4 analysts providing estimates. The consensus recommendation is not explicitly provided, but the institutional ratings show a mix of Overweight, Buy, Outperform, Equal Weight, and Neutral ratings, indicating a balanced but slightly bullish tilt. The average EPS estimate for the next fiscal year is $15.98, with a range of $15.84 to $16.11. Revenue estimates average $6.385 billion, with a range of $6.343 billion to $6.424 billion. The average target price is not directly given, but based on the forward P/E of 8.2x and current price of $88.51, the implied target would be around $131 (8.2x $15.98), suggesting approximately 48% upside. However, this is a rough calculation. The limited analyst coverage (4 analysts) indicates that GoDaddy is not heavily followed, which is typical for mid-cap stocks. This can lead to higher volatility and less efficient price discovery, but also presents opportunities for investors who do their own research. The wide range of ratings (from Neutral to Overweight) suggests uncertainty about the company's growth trajectory and the impact of its AI initiatives.
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GDDY Technical Analysis
GoDaddy is in a sustained downtrend, with the stock price falling 49.5% over the past year, significantly underperforming the S&P 500's 19.1% gain. The current price of $88.51 sits at 16.7% above the 52-week low of $71.59 but 50.7% below the 52-week high of $179.61, indicating the stock is deep in the lower half of its range and reflecting persistent selling pressure. This positioning near the low end suggests either a potential value opportunity if fundamentals stabilize or a falling knife if the downtrend continues. Short-term momentum shows a mixed picture: the 1-month price change is -4.5%, while the 3-month change is +8.4%, indicating a recent bounce from the June lows. However, the 1-year trend remains decisively bearish, and the 1-month relative strength versus the S&P 500 is +1.2%, suggesting the stock is stabilizing but not yet reversing. The divergence between the 3-month recovery and the 1-year decline could signal a potential bottoming process, but confirmation is needed. Key support lies at the 52-week low of $71.59, while resistance is at the 52-week high of $179.61. A breakout above $179.61 would signal a major trend reversal, while a breakdown below $71.59 could accelerate losses. The stock's beta of 0.888 indicates it is slightly less volatile than the market, meaning it may not amplify broad market moves, but its own downtrend has been severe.
Beta
0.89
0.89x market volatility
Max Drawdown
-59.0%
Largest decline past year
52-Week Range
$72-$175
Price range past year
Annual Return
-49.8%
Cumulative gain past year
| Period | GDDY Return | S&P 500 |
|---|---|---|
| 1m | +7.7% | +2.0% |
| 3m | +10.8% | +10.6% |
| 6m | -22.6% | +8.3% |
| 1y | -49.8% | +20.4% |
| ytd | -25.9% | +10.2% |
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GDDY Fundamental Analysis
GoDaddy's revenue trajectory is steadily growing, with Q4 2025 revenue of $1.274 billion, up 6.8% year-over-year from $1.193 billion in Q4 2024. The multi-quarter trend shows consistent sequential growth from $1.108 billion in Q1 2024 to $1.274 billion in Q4 2025, though the YoY growth rate has decelerated from 7.5% in Q1 2025 to 6.8% in Q4 2025. The Core Platform segment, which includes domain registrations and hosting, drives the majority of revenue, while the Applications and Commerce segment adds incremental growth. This steady, albeit decelerating, growth supports a mature business model but limits upside catalysts. Profitability is robust, with Q4 2025 net income of $245.1 million and a net margin of 19.2%, up from 16.7% in Q4 2024. Gross margin expanded to 64.6% in Q4 2025 from 64.6% in the prior year, while operating margin improved to 24.9% from 21.4%, reflecting operating leverage and cost discipline. The company is solidly profitable and generating expanding margins, which is typical for mature software infrastructure firms. The balance sheet shows high leverage with a debt-to-equity ratio of 17.96, but this is mitigated by strong cash flow: free cash flow was $363.7 million in Q4 2025 and $1.576 billion on a trailing twelve-month basis. The current ratio of 0.61 indicates tight liquidity, but the company's consistent FCF generation provides flexibility. ROE is elevated at 406.8% due to high leverage, but ROA of 9.4% reflects efficient asset use. The aggressive share buyback program ($218.9 million in Q4 2025 alone) reduces equity and boosts EPS, but the high debt load warrants monitoring.
Quarterly Revenue
$1.3B
2025-12
Revenue YoY Growth
+6.82%
YoY Comparison
Gross Margin
64.64%
Latest Quarter
Free Cash Flow
$1.6B
Last 12 Months
Revenue & Net Income Trends (2 Years)
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Valuation Analysis: Is GDDY Overvalued?
Since net income is positive, the primary valuation metric is the P/E ratio. The trailing P/E is 19.6x, while the forward P/E is 8.2x, implying the market expects significant earnings growth in the coming year. This wide gap suggests that the current price is discounting a sharp earnings recovery, likely driven by margin expansion and buybacks. Compared to the industry average (Software - Infrastructure), GoDaddy's trailing P/E of 19.6x is below the sector median of approximately 30x, representing a 35% discount. However, the forward P/E of 8.2x is even more attractive relative to the sector's forward median of 25x, a 67% discount. This discount may be justified by GoDaddy's slower revenue growth (6-7% YoY) versus high-growth peers, but its strong margins and cash flow generation argue for a narrower discount. Historically, GoDaddy's trailing P/E has ranged from 3.4x (Q4 2023) to 78.1x (Q2 2021). The current 19.6x is near the lower end of its historical range, suggesting the stock is cheap relative to its own history. The low P/E reflects the market's pessimism about growth prospects, but if the company can sustain its margin expansion and buyback program, the valuation could re-rate higher.
PE
19.6x
Latest Quarter
vs. Historical
Low-End
5-Year PE Range 3x~304x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.2x
Enterprise Value Multiple

