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.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.More news from Barchart
- Experts Think This Crypto Stock Is a Takeover Target. Should You Buy Shares Now?
- Bill Ackman Is Betting Big on Uber Stock. Should You?
- Amazon's Results Show Strong FCF - Value Investors Like This
- This Red-Hot Quantum Computing Stock Just Scored a General Dynamics Deal
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
