Tempe, Arizona-based GoDaddy Inc. (GDDY) is an internet domain registrar and web hosting company that also sells e-business-related software and services. With a market cap of $26.5 billion, GoDaddy operates through Applications and Commerce, and Core Platform segments.
The internet giant has substantially outperformed the broader market over the past year. GDDY stock prices have soared 74.5% on a YTD basis and 104.5% over the past 52-week period, outpacing the S&P 500 Index’s ($SPX) rally of 24.7% in 2024 and 32.3% over the past year.
Narrowing the focus, GDDY has also outpaced First Trust Dow Jones Internet Index Fund’s (FDN) surge of 26.8% in 2024 and 42.3% over the past year.
GoDaddy has continued to showcase robust topline growth, improved profitability, and strong cash generation. GDDY stock prices surged 3.2% in the trading session after the release of its impressive Q3 earnings on Oct. 30. The company reported a solid 7.3% year-over-year growth in total revenues, reaching $1.1 billion, primarily driven by the strong momentum in its application & commerce segment which reported a 16.5% growth in revenue to $423.1 million. Moreover, its annualized recurring revenue for application & commerce segment grew 15% year-over-year to $1.6 billion.
Meanwhile, GoDaddy’s profitability looks even more impressive as its net income to shareholders surged by a staggering 45.8% compared to the year-ago quarter, totaling $190.5 million and its EPS of $1.32 surpassed analysts’ bottom-line estimates by a notable 5.6%, bolstering investors’ confidence.
For the current fiscal year, ending in December, analysts expect GDDY to report a staggering 76.2% year-over-year growth in EPS to $4.95. Moreover, the company has a robust earnings surprise history. GoDaddy has surpassed analysts’ bottom-line estimates in each of the past four quarters.
GDDY stock has a consensus “Moderate Buy” rating overall. Out of the 17 analysts covering the stock, nine advise “Strong Buy,” one suggests “Moderate Buy,” and seven recommend a “Hold” rating.
This configuration is slightly less bullish than two months ago, when 10 analysts recommended a “Strong Buy” rating.
On Nov. 1, RBC Capital analyst Brad Erickson maintained an “Outperform” rating while raising the price target to $190.
Although GDDY is trading slightly above its mean price target of $182.33, the Street-high target of $200 suggests a potential upside of 7.9% to current price levels.
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