GoDaddy
GDDY
$101.31
-2.24%
GoDaddy Inc is a leading technology provider offering an integrated platform of digital solutions and services for entrepreneurs, small businesses, and individuals, including domain registration, website hosting, and security products. The company operates through two segments: Applications and Commerce (A&C) and Core Platform (Core), with the latter generating the majority of revenue. GoDaddy is a market leader in domain registration and web services for SMBs, distinguishing itself through its scale and comprehensive service ecosystem. The current investor narrative centers on GoDaddy's transformation into an AI-driven efficiency play, with recent news highlighting its exclusive partnership with LegalZoom and aggressive share buybacks, positioning it as a potential hidden value stock despite a challenging year.…
GDDY
GoDaddy
$101.31
Related headlines
Investment Opinion: Should I buy GDDY Today?
Based on the analysis, I rate GoDaddy as a Hold. The stock is attractively valued with a forward PE of 9.19x and a price-to-sales ratio of 3.46x, but the decelerating revenue growth and high debt levels warrant caution. The analyst consensus is a Buy with an average target price of $104.53, implying a modest 3.2% upside from the current price of $101.31, which is not compelling enough to justify a strong buy.
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GDDY 12-Month Price Forecast
The AI assessment is neutral with medium confidence. The stock's low forward PE suggests the market expects significant earnings growth, but the decelerating revenue growth and high debt levels create uncertainty. The company's strong free cash flow and aggressive buybacks provide a floor, but the lack of clear catalysts for growth reacceleration limits upside. I would upgrade to bullish if revenue growth stabilizes or improves above 7% and margins expand, or if the stock price drops to a more attractive level below $90. Conversely, I would downgrade to bearish if revenue growth falls below 4% or if the company faces liquidity issues.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on GoDaddy's 12-month outlook, with a consensus price target around $104.53 and implied upside of +3.2% versus the current price.
Average Target
$104.53
0 analysts
Implied Upside
+3.2%
vs. current price
Analyst Count
—
covering this stock
Price Range
$76 - $170
Analyst target range
The target price range spans from a low of $76.00 to a high of $170.00, indicating a wide dispersion of expectations. The low target suggests a potential downside of 25% if the company faces margin compression or competitive losses, while the high target implies a 68% upside, likely assuming successful AI-driven transformation and accelerated growth. Recent ratings have been stable, with no downgrades, but the wide spread highlights significant uncertainty. The presence of 15 analysts and a mix of ratings suggests moderate conviction, with the consensus leaning bullish but not overwhelmingly so.
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Bulls vs Bears: GDDY Investment Factors
GoDaddy presents a mixed picture: strong free cash flow, aggressive buybacks, and a low forward PE suggest value, but decelerating revenue growth, high leverage, and significant underperformance versus the market raise concerns. The bull case hinges on the market's expectation of substantial earnings growth (as implied by the forward PE gap) and successful AI-driven margin expansion, while the bear case focuses on the deceleration in growth and high debt. Currently, the evidence slightly favors the bearish side due to the persistent downtrend and growth deceleration, but the low valuation and potential catalysts could shift the balance. The most critical tension is whether the company can accelerate earnings growth enough to justify the low forward PE, or if the deceleration in revenue will persist and lead to further de-rating.
Bullish
- Forward PE of 9.2x signals undervaluation: The forward PE of 9.19x is dramatically lower than the trailing PE of 19.57x, implying the market expects substantial earnings growth. This low multiple for a tech company suggests the stock is undervalued if the company can meet growth expectations.
- Strong free cash flow generation: GoDaddy generated $1.64 billion in trailing twelve-month free cash flow, providing ample capital for buybacks and debt reduction. This robust cash flow supports shareholder returns and financial flexibility.
- AI-driven efficiency and LegalZoom partnership: The exclusive partnership with LegalZoom creates a new customer funnel for GoDaddy's services, potentially accelerating growth. Additionally, AI-driven efficiencies are expected to improve margins and profitability, as highlighted in recent news.
- Aggressive share buybacks: The company has been aggressively repurchasing shares, reducing the share count from 141.7 million in Q1 2025 to 133.6 million in Q1 2026. This buyback activity supports EPS growth and signals management confidence.
Bearish
- Revenue growth decelerating: Quarterly revenue growth has slowed from 8.5% YoY in Q2 2025 to 6.1% in Q1 2026. This deceleration indicates a maturing business and may limit upside potential if the trend continues.
- High debt-to-equity ratio: The debt-to-equity ratio stands at 17.96x, reflecting significant leverage. While the company generates strong cash flow, high debt levels increase financial risk, especially if interest rates remain elevated.
- Stock underperforming market significantly: Over the past year, GDDY has declined 30.09% while the S&P 500 gained 18.65%, underperforming by nearly 49 percentage points. This persistent underperformance may indicate structural issues or loss of investor confidence.
- Low current ratio indicates liquidity risk: The current ratio of 0.61 suggests that current liabilities exceed current assets, which could pose liquidity challenges. This is particularly concerning for a company with high debt levels.
GDDY Technical Analysis
GoDaddy's stock is in a pronounced downtrend over the past year, with a 1-year price change of -30.09%, significantly underperforming the S&P 500's +18.65% gain. The current price of $101.31 sits at 67.3% of its 52-week range (between $71.59 low and $150.47 high), indicating the stock is closer to the lower end of its range, reflecting persistent bearish sentiment. This positioning suggests the market is pricing in significant headwinds, but the stock has shown signs of stabilization in recent months, trading well above its 52-week low of $71.59.
Beta
0.94
0.94x market volatility
Max Drawdown
-52.6%
Largest decline past year
52-Week Range
$72-$150
Price range past year
Annual Return
-30.1%
Cumulative gain past year
| Period | GDDY Return | S&P 500 |
|---|---|---|
| 1m | +10.4% | -0.4% |
| 3m | +20.1% | +4.5% |
| 6m | +7.8% | +13.9% |
| 1y | -30.1% | +19.0% |
| ytd | -14.5% | +12.9% |
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GDDY Fundamental Analysis
GoDaddy's revenue growth has been steady but modest, with the most recent quarter (Q1 2026) reporting revenue of $1.2669 billion, a 6.08% year-over-year increase. Over the past year, quarterly revenue has grown from $1.1943 billion in Q1 2025 to $1.2669 billion, indicating a consistent but decelerating growth trajectory, with the YoY growth rate declining from 8.5% in Q2 2025 to 6.1% in Q1 2026. The company's revenue segments show Core Platform contributing $2.2977 billion and Applications and Commerce $1.1529 billion, with the latter likely driving growth through higher-margin products. This moderate growth suggests a mature business, but the company's focus on AI-driven efficiencies and cross-selling opportunities could provide catalysts.
Quarterly Revenue
$1.3B
2026-03
Revenue YoY Growth
+6.1%
YoY Comparison
Gross Margin
56.0%
Latest Quarter
Free Cash Flow
$1.6B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is GDDY Overvalued?
Given GoDaddy's positive net income, the PE ratio is the primary valuation metric. The trailing PE stands at 19.57x, while the forward PE is significantly lower at 9.19x, implying the market expects substantial earnings growth. This gap suggests that analysts anticipate a major increase in earnings, likely driven by margin expansion and cost efficiencies. The forward PE of 9.19x is notably low for a tech company, indicating potential undervaluation if the company can deliver on growth expectations.
PE
19.6x
Latest Quarter
vs. Historical
Mid-Range
5-Year PE Range 3x~50x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
15.5x
Enterprise Value Multiple
Investment Risk Disclosure
Financially, GoDaddy carries a high debt-to-equity ratio of 17.96x, indicating substantial leverage that could strain cash flows if interest rates rise or earnings decline. The current ratio of 0.61 suggests potential liquidity issues, as current liabilities exceed current assets. While the company generates robust free cash flow of $1.64 billion TTM, a significant portion may be directed toward debt servicing, limiting flexibility for growth investments. Additionally, revenue growth has decelerated from 8.5% YoY in Q2 2025 to 6.1% in Q1 2026, and if this trend continues, it could pressure the company's ability to service its debt and maintain its buyback program.
