GoDaddy
GDDY
$94.91
-5.56%
GoDaddy Inc. is a technology company that provides digital solutions and services for entrepreneurs, small businesses, individuals, organizations, developers, designers, and domain investors, operating through two segments: Applications and Commerce (A&C) and Core Platform (Core). As a market leader in domain registration and web hosting, GoDaddy distinguishes itself through its integrated platform that supports business creation and management, with the majority of revenue derived from the Core Platform segment. The current investor narrative centers on GoDaddy's transformation into an AI-driven efficiency play, highlighted by aggressive share buybacks and strong cash flow generation, despite a significant stock price decline over the past year. Recent news also points to strategic partnerships, such as the exclusive deal with LegalZoom, which could expand its customer funnel and drive future growth.…
GDDY
GoDaddy
$94.91
Related headlines
Investment Opinion: Should I buy GDDY Today?
Rating: Hold. GoDaddy is a hold based on its discounted valuation and strong cash flow, but offset by decelerating growth and high leverage. The analyst consensus is 'buy' with an average target of $104.80, implying 16% upside, but the wide range ($80-$170) reflects uncertainty. The thesis is that GoDaddy's AI-driven efficiency gains and strategic partnerships could reaccelerate growth, but the market's skepticism is not unfounded given the recent underperformance.
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GDDY 12-Month Price Forecast
The AI assessment is neutral with medium confidence. GoDaddy's valuation is attractive relative to peers, and its margin expansion is impressive, but revenue growth is decelerating, and the stock has underperformed significantly. The key factor is whether the company can sustain margin gains and stabilize growth. If revenue growth reaccelerates above 8%, the stance would upgrade to bullish; if it falls below 4%, it would downgrade to bearish. The current risk-reward is balanced, making a neutral stance appropriate.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on GoDaddy's 12-month outlook, with a consensus price target around $104.80 and implied upside of +10.4% versus the current price.
Average Target
$104.80
0 analysts
Implied Upside
+10.4%
vs. current price
Analyst Count
—
covering this stock
Price Range
$80 - $170
Analyst target range
GoDaddy is covered by 15 analysts, with a consensus recommendation of 'buy' and a mean recommendation score of 2.24 (where 1 is strong buy and 5 is sell). The average target price is $104.80, implying an upside of approximately 16% from the current price of $90.35. The distribution includes 10 analysts with buy/overweight ratings, 3 with hold/neutral, and 2 with underperform/sell, indicating a generally bullish sentiment. The target price range is wide, from a low of $80.00 to a high of $170.00, reflecting significant uncertainty about the company's future. The high target of $170 assumes a successful AI transformation and multiple expansion, while the low target of $80 prices in continued margin compression and competitive pressures. Recent institutional ratings have been stable, with no major upgrades or downgrades in the past six months, suggesting analysts are maintaining their positions while awaiting clearer catalysts.
Bulls vs Bears: GDDY Investment Factors
GoDaddy presents a mixed picture: strong cash flow, margin expansion, and a discounted valuation are offset by decelerating growth, high leverage, and severe market underperformance. The bull case rests on the company's ability to leverage AI for efficiency gains and expand through partnerships, while the bear case focuses on growth deceleration and competitive threats. Currently, the evidence slightly favors the bull case due to the significant valuation discount and analyst consensus, but the key tension is whether the company can reignite growth or if the market's skepticism is justified. The resolution of this tension—whether revenue growth stabilizes above 6% and margins continue to expand—will determine the stock's trajectory.
Bullish
- Undervalued vs. Industry Peers: GoDaddy's PS ratio of 3.46x is 60% below the software infrastructure industry average of 8.72x, indicating the market is pricing in significant skepticism or a genuine value opportunity. This discount could narrow as the company demonstrates stable growth and margin expansion.
- Strong Cash Flow Generation: GoDaddy generated $1.64 billion in TTM free cash flow, with Q1 2026 FCF of $466.9 million, providing ample coverage for its debt obligations and supporting aggressive share buybacks. This cash generation underpins shareholder returns and financial flexibility.
- Margin Expansion Driving Profitability: Operating margin expanded from 18.5% in Q2 2024 to 24.7% in Q1 2026, reflecting strong cost control and operational leverage. Net margin improved to 16.9% in Q1 2026, with gross margin reaching 63.6% in Q4 2025, indicating efficiency gains from AI-driven initiatives.
- Analyst Consensus is Buy: With 15 analysts covering, the consensus recommendation is 'buy' with a mean score of 2.24 (1=strong buy, 5=sell). The average target price of $104.80 implies 16% upside from the current price of $90.35, suggesting analysts see value despite recent underperformance.
Bearish
- Severe Underperformance vs. Market: GoDaddy's stock has declined 41.64% over the past year, while the S&P 500 gained 21.46%, resulting in a relative strength of -63.10%. This significant underperformance indicates persistent selling pressure and a loss of investor confidence.
- Decelerating Revenue Growth: Revenue growth slowed from 8.4% in Q2 2025 to 6.1% in Q1 2026, signaling a maturing business. This deceleration may justify a lower valuation multiple and raises concerns about the company's ability to sustain growth in a competitive market.
- High Debt-to-Equity Ratio: GoDaddy's debt-to-equity ratio of 17.96 is extremely high, indicating significant leverage. While free cash flow covers interest expenses, this leverage increases financial risk, especially if revenue growth stalls or interest rates remain elevated.
- Negative PEG Ratio and Earnings Volatility: The PEG ratio of -4.47 reflects negative earnings growth expectations, which is concerning despite being skewed by one-time items. This suggests the market expects earnings to decline, potentially due to competitive pressures or margin compression.
GDDY Technical Analysis
GoDaddy's stock is in a pronounced downtrend, with a 1-year price change of -41.64%, significantly underperforming the S&P 500's +21.46% gain over the same period. The current price of $90.35 sits at approximately 58% of its 52-week range (low $71.59, high $155.90), indicating the stock is closer to its lows than its highs, suggesting a bearish sentiment and potential value trap or opportunity depending on fundamentals. The stock's beta of 0.918 indicates slightly lower volatility than the market, but the relative strength metrics show severe underperformance across all timeframes, with a 1-year relative strength of -63.10% versus the S&P 500.
Beta
0.92
0.92x market volatility
Max Drawdown
-56.1%
Largest decline past year
52-Week Range
$72-$150
Price range past year
Annual Return
-33.9%
Cumulative gain past year
| Period | GDDY Return | S&P 500 |
|---|---|---|
| 1m | +4.0% | +2.9% |
| 3m | +8.9% | +5.0% |
| 6m | +6.5% | +13.9% |
| 1y | -33.9% | +20.4% |
| ytd | -19.9% | +13.8% |
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GDDY Fundamental Analysis
GoDaddy's revenue growth has been steady but modest, with Q1 2026 revenue of $1.2669 billion, up 6.08% year-over-year, and a sequential increase from $1.2739 billion in Q4 2025. The multi-quarter trend shows consistent growth from $1.1245 billion in Q2 2024 to $1.2669 billion in Q1 2026, though the growth rate has decelerated from 8.4% in Q2 2025 to 6.1% in Q1 2026, indicating a maturing business. The Applications and Commerce segment generated $1.1529 billion in revenue, while Core Platform contributed $2.2977 billion, with the latter being the primary driver. The company's profitability is solid, with Q1 2026 net income of $214.6 million and a net margin of 16.9%, while gross margin improved to 63.6% in Q4 2025 from 55.0% in Q3 2025, reflecting operational efficiency gains. Operating margin has expanded from 18.5% in Q2 2024 to 24.7% in Q1 2026, indicating strong cost control and leverage. GoDaddy's balance sheet shows a high debt-to-equity ratio of 17.96, but the company generates robust free cash flow of $1.6413 billion TTM, with Q1 2026 FCF of $466.9 million, providing ample coverage for its debt obligations. The current ratio of 0.61 suggests potential liquidity concerns, but the strong operating cash flow of $471.5 million in Q1 2026 and aggressive share repurchases ($280.5 million in Q1 2026) indicate a focus on returning capital to shareholders.
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 is 19.57x, while the forward PE is 8.19x, a significant gap that implies the market expects substantial earnings growth, likely driven by AI-driven efficiency gains and margin expansion. The PEG ratio is -4.47, which is negative due to negative earnings growth expectations, but this is skewed by one-time items. Compared to the software infrastructure industry, GoDaddy's PS ratio of 3.46x is below the industry average of 8.72x (from Q1 2026 historical data), representing a 60% discount, which may reflect the market's skepticism about growth or a genuine value opportunity. Historically, GoDaddy's PE has ranged from 3.31x (Q4 2023) to 77.64x (Q2 2021), and the current trailing PE of 19.57x is near the lower end of this range, suggesting the stock is trading at a discount to its own historical valuation, potentially indicating undervaluation or deteriorating fundamentals.
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
Financial & Operational Risks: GoDaddy's high debt-to-equity ratio of 17.96 indicates substantial leverage, which amplifies financial risk if cash flows weaken. However, the company generates robust free cash flow of $1.64 billion TTM, providing a cushion for debt servicing. The current ratio of 0.61 suggests potential liquidity concerns, but strong operating cash flow of $471.5 million in Q1 2026 mitigates this. Revenue growth deceleration from 8.4% to 6.1% over the past year signals a maturing business, which could pressure margins if competition intensifies. Additionally, the negative PEG ratio of -4.47 implies market expectations of earnings decline, which could be a red flag for future profitability.