Valued at a market cap of $29.7 billion, GoDaddy Inc. (GDDY) is a global internet domain registrar and web hosting company that offers cloud-based solutions for small businesses, web professionals, and individuals. Operating through its Applications and Commerce and Core Platform segments, it provides website building tools, e-commerce solutions, domain registration, hosting, and security services.
Shares of the cloud-based technology products developer have outperformed the broader market over the past 52 weeks. GDDY stock has surged 82.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.4%. Moreover, shares of GDDY are up 4.6% on a YTD basis, compared to SPX's 2.9% gain.
In addition, the Tempe, Arizona-based company has also outpaced the Technology Select Sector SPDR Fund's (XLK) 13.7% return over the past 52 weeks and a 1.6% YTD rise.
Shares of GDDY rose 3.2% following its strong Q3 earnings release on Oct. 30, including EPS of $1.32, which beat the consensus estimate and marked a 48.3% year-over-year increase. Revenue grew 7.3% year-over-year to $1.2 billion, surpassing estimates, driven by a 16.5% rise in Applications & Commerce revenue and steady Core Platform growth. Additionally, improved profitability, reflected in a 23.8% increase in normalized EBITDA and a 420-basis-point margin expansion, and GoDaddy’s positive Q4 guidance and full-year free cash flow of at least $1.3 billion, further fueled investor optimism.
For fiscal 2024, which ended in December, analysts expect GDDY's EPS to grow 76.5% year-over-year to $4.96. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” and eight “Holds.”
On Dec. 5, 2024, JPMorgan raised GoDaddy’s price target to $224 and maintained an “Overweight" rating, citing strong growth potential in its high-margin Applications & Commerce segment. The firm highlighted Airo’s free version as a cross-sell driver and Airo Plus as a monetization opportunity.
As of writing, GDDY is trading below the mean price target of $211.31. The Street-high price target of $251 implies a potential upside of 21.1% from the current price levels.
