GDDY

GoDaddy

$96.21

+5.41%
Jul 16, 2026
Bobby Quantitative Model
GoDaddy Inc provides digital solutions and services for entrepreneurs, small businesses, and individuals, including domain registration, web hosting, website security, and applications and commerce tools. As a leading platform in the domain and web hosting market, GoDaddy differentiates itself through its integrated service platform that supports business creation and management. The current investor narrative centers on GoDaddy's transformation into a higher-margin, cash-flow-generative business, driven by AI-driven efficiency gains, aggressive share buybacks, and a recent exclusive partnership with LegalZoom that expands its customer funnel. Despite a sharp 45% decline from its 52-week high, the stock is attracting attention as a potential value opportunity with improving fundamentals.

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GDDY 12-Month Price Forecast

Historical Price
Current Price $96.21
Average Target $96.21
High Target $110.64
Low Target $81.78

Wall Street consensus

Most Wall Street analysts maintain a constructive view on GoDaddy's 12-month outlook, with a consensus price target around $111.93 and implied upside of +16.3% versus the current price.

Average Target

$111.93

0 analysts

Implied Upside

+16.3%

vs. current price

Analyst Count

covering this stock

Price Range

$83 - $190

Analyst target range

GoDaddy is covered by 15 analysts, with a consensus recommendation of 'Buy' and a mean recommendation score of 2.06 (where 1 is Strong Buy and 5 is Sell). The average target price is $111.93, implying approximately 22.6% upside from the current price of $91.27. The distribution leans bullish, with no sell ratings among recent institutional ratings; firms like JP Morgan, Benchmark, Citigroup, Barclays, and RBC Capital maintain Overweight or Buy ratings. The consensus reflects confidence in the company's cash flow generation and value proposition.

The target price range spans from a low of $83.00 to a high of $190.00, representing a wide spread of $107, indicating significant uncertainty. The high target of $190 assumes a return to prior highs driven by margin expansion, AI-driven growth, and successful execution of the LegalZoom partnership. The low target of $83 suggests downside risk from competitive pressures, debt concerns, or failure to sustain growth. Recent analyst actions have been mostly reaffirmations, with no downgrades, signaling steady sentiment. The wide range implies that while the consensus is bullish, there is considerable divergence in expectations, making the stock a high-conviction but high-risk opportunity.

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Bulls vs Bears: GDDY Investment Factors

GoDaddy presents a classic value-versus-value-trap debate. On the bull side, the stock trades at a deep discount to peers (forward P/E 8.47x vs. industry 25x), generates robust free cash flow ($1.64B TTM), and is executing a transformation toward higher margins and AI-driven efficiency. The LegalZoom partnership and aggressive buybacks provide tangible catalysts. On the bear side, the 45.65% one-year decline, high leverage (D/E 17.96), and slowing revenue growth (6.08% YoY) argue that the low valuation is justified. The single most important tension is whether the company can reaccelerate revenue growth and expand margins enough to justify the forward earnings estimates. If it does, the stock could rerate significantly; if not, the low P/E may persist or compress further. Currently, the evidence slightly favors the bull case given the strong FCF yield and analyst consensus, but the risk is elevated.

Bullish

  • Deep Value with 22.6% Upside to Target: The stock trades at $91.27, 46.8% below its 52-week high of $171.42, yet analysts set an average target of $111.93, implying 22.6% upside. The forward P/E of 8.47x is a 66% discount to the industry average of 25x, suggesting significant undervaluation if earnings materialize.
  • Strong Free Cash Flow Generation: TTM free cash flow is $1.641 billion, yielding ~9.8% at the current market cap. Q1 2026 FCF was $466.9 million, supporting aggressive buybacks ($280.5 million in Q1) and debt reduction, which enhances per-share value.
  • Improving Margins and Profitability: Operating margin expanded to 24.68% in Q1 2026 from 20.71% a year ago, driven by operating leverage and AI efficiency. Net income grew to $214.6 million, with net margin at 16.94%, reflecting a shift to higher-margin services.
  • LegalZoom Partnership Expands Funnel: The exclusive deal with LegalZoom provides a massive new customer acquisition channel for GoDaddy's domain and hosting services. This could reaccelerate revenue growth from the current 6.08% YoY and offset maturation in core markets.

Bearish

  • High Debt and Negative Equity Risk: Debt-to-equity ratio is 17.96, and equity is negative due to cumulative buybacks, making the balance sheet fragile. The current ratio of 0.61 indicates potential liquidity stress, though strong FCF mitigates near-term risk.
  • Slowing Revenue Growth Trajectory: Revenue growth decelerated to 6.08% YoY in Q1 2026 from 7.5% in Q4 2025 and double-digit rates in prior years. The Core Platform segment, generating $2.3 billion, faces market saturation, and new catalysts may not sustain acceleration.
  • Massive 45.65% One-Year Decline: The stock has underperformed the S&P 500 by 66.57 percentage points over the past year, reflecting deep investor pessimism. The 52-week low of $71.59 is only 21.6% below the current price, leaving limited downside cushion.
  • Wide Analyst Target Range Signals Uncertainty: Analyst targets range from $83.00 to $190.00, a spread of $107, indicating extreme divergence in expectations. The low target implies 9.1% downside from current levels, highlighting risk of further declines if fundamentals disappoint.

GDDY Technical Analysis

GoDaddy is in a sustained downtrend, with the stock price down 45.65% over the past year, significantly underperforming the S&P 500's 20.92% gain. The current price of $91.27 sits at 53.2% of its 52-week range ($71.59 low to $171.42 high), indicating the stock is closer to its low than its high. This positioning suggests the market has priced in substantial pessimism, but also leaves room for a potential recovery if fundamentals improve. The stock's beta of 0.888 implies it is less volatile than the market, which may provide some downside protection during broader selloffs.

Short-term momentum has been positive, with the stock gaining 17.78% over the past month and 8.32% over the past three months, contrasting sharply with the 12.63% decline over six months. This divergence suggests a potential trend reversal or at least a short-term bounce from oversold conditions. The 1-month relative strength of 17.18% versus the S&P 500's 0.6% indicates strong recent outperformance, which could be driven by the LegalZoom partnership announcement and value-oriented buying. However, the 1-year relative strength of -66.57% underscores the persistent long-term weakness.

The 52-week low of $71.59 serves as key support, while the 52-week high of $171.42 is a major resistance level. A breakout above $171.42 would signal a reversal of the downtrend, while a breakdown below $71.59 could lead to further downside. The stock's beta of 0.888 suggests it is 11.2% less volatile than the market, which may appeal to risk-averse investors but also means it may lag during strong market rallies. The current price is 27.5% above the 52-week low, providing a modest cushion, but still 46.8% below the high, indicating significant overhead supply.

Beta

0.89

0.89x market volatility

Max Drawdown

-58.4%

Largest decline past year

52-Week Range

$72-$171

Price range past year

Annual Return

-42.8%

Cumulative gain past year

PeriodGDDY ReturnS&P 500
1m+22.1%+0.1%
3m+12.2%+5.7%
6m-7.9%+8.5%
1y-42.8%+20.3%
ytd-18.8%+10.1%

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GDDY Fundamental Analysis

GoDaddy's revenue has been steadily growing, with Q1 2026 revenue of $1.267 billion, up 6.08% year-over-year from $1.194 billion in Q1 2025. The trailing twelve-month revenue is approximately $5.02 billion, with the Core Platform segment (domains, hosting, security) generating $2.298 billion and Applications & Commerce contributing $1.153 billion. Revenue growth has been consistent, with sequential increases from $1.124 billion in Q2 2024 to $1.267 billion in Q1 2026, though the pace has moderated from double-digit to mid-single-digit growth. The deceleration may reflect market maturation, but the LegalZoom partnership could reaccelerate customer acquisition.

Profitability has improved markedly, with net income of $214.6 million in Q1 2026, up from $219.5 million in Q1 2025, despite higher revenue. Net margin expanded to 16.94% from 18.38% a year ago, while gross margin improved to 55.98% from 63.12% in Q1 2025, reflecting a shift in revenue mix. Operating margin rose to 24.68% from 20.71%, driven by operating leverage and cost controls. The company has been consistently profitable, with net income ranging from $146 million to $245 million over the past eight quarters, indicating a stable earnings base.

GoDaddy's balance sheet shows high leverage, with a debt-to-equity ratio of 17.96, but this is partly due to negative equity from share buybacks. The current ratio of 0.61 suggests liquidity risk, though the company generates strong free cash flow—$1.641 billion on a TTM basis, with Q1 2026 FCF of $466.9 million. Free cash flow yield is approximately 9.8% based on the current market cap, indicating robust cash generation. ROE is 406.8%, inflated by negative equity, but ROA of 9.39% reflects efficient asset use. The company has been aggressively repurchasing shares, with $280.5 million in buybacks in Q1 2026 alone, which supports EPS growth.

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

Applications And Commerce
Core Platform

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Valuation Analysis: Is GDDY Overvalued?

Since GoDaddy has positive net income, the primary valuation metric is the P/E ratio. The trailing P/E is 19.60x, while the forward P/E is 8.47x, implying the market expects significant earnings growth. The wide gap between trailing and forward P/E suggests that analysts anticipate a sharp increase in earnings, likely driven by margin expansion and buybacks. The PEG ratio of -4.33 is negative due to negative earnings growth expectations, which warrants caution.

Compared to the Software - Infrastructure industry, GoDaddy's trailing P/E of 19.60x is below the industry average of approximately 35x, representing a 44% discount. However, the forward P/E of 8.47x is even more attractive relative to the industry forward average of 25x, a 66% discount. This discount may be justified by GoDaddy's slower revenue growth (6% YoY) versus high-growth peers, but its strong free cash flow and profitability could warrant a narrower discount. The EV/Sales multiple of 2.91x is also below the industry average of 5x, reinforcing the value perception.

Historically, GoDaddy's trailing P/E has ranged from 3.3x (Q4 2023) to 77.6x (Q2 2021), with the current 19.60x near the lower end of its five-year range. The P/B ratio of 78.1x is extremely high due to negative equity, making it less meaningful. The current valuation is near historical lows, suggesting the market is pricing in pessimistic expectations. If the company can deliver on earnings growth, the stock could see multiple expansion, but the low valuation also reflects risks such as high debt and slowing growth.

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

15.2x

Enterprise Value Multiple

Investment Risk Disclosure

Financial & Operational Risks: GoDaddy's balance sheet is highly leveraged with a debt-to-equity ratio of 17.96, largely due to negative equity from aggressive share buybacks. The current ratio of 0.61 indicates potential short-term liquidity challenges, though the company's TTM free cash flow of $1.641 billion provides a strong cushion. Net income has been stable, but the reliance on continued margin expansion to justify the forward P/E of 8.47x is a risk—if operating margins fail to sustain above 24%, earnings estimates could prove optimistic. Additionally, revenue growth has slowed to 6.08% YoY, and any further deceleration would pressure the valuation multiple.

Market & Competitive Risks: The stock's beta of 0.888 suggests lower market correlation, but its 45.65% one-year decline versus the S&P 500's 20.92% gain shows it is highly sensitive to company-specific factors. The industry average P/E of 35x trailing and 25x forward means GoDaddy's discount could narrow if growth reaccelerates, but it could also widen if competitors like Wix or Squarespace gain share. The LegalZoom partnership is a positive, but execution risk remains. Macro headwinds, such as rising interest rates compressing growth stock multiples, could further pressure the stock, especially given its high debt load.

Worst-Case Scenario: In a severe downturn, GoDaddy could face a combination of revenue growth falling below 3%, margin compression from competitive pricing, and a debt refinancing crisis. The analyst low target of $83.00 implies 9.1% downside from the current price, but the 52-week low of $71.59 represents a potential 21.6% decline. Historically, the stock has experienced a max drawdown of -58.36%, which from the current price would imply a drop to approximately $38.00. While such a scenario is unlikely given the company's cash flow, it underscores the risk for leveraged positions. An investor could lose up to 21.6% if the stock revisits its 52-week low, or more in a prolonged bear case.