In a report released today, Elizabeth Porter from Morgan Stanley maintained a Hold rating on GoDaddy, with a price target of $159.00.
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Elizabeth Porter’s rating is based on GoDaddy’s innovative strides in AI technology and their strategic approach to monetization. The company has demonstrated rapid product development with Airo.ai, showcasing potential for growth through various monetization strategies such as paywalls and dynamic renewals. However, despite these advancements, investors are cautious, awaiting evidence of revenue growth that does not compromise profit margins.
Porter notes that while GoDaddy’s management is confident in maintaining their margin framework amidst AI-related costs, the market remains skeptical. The company’s proprietary infrastructure offers cost advantages, and leadership believes AI-related expenses will decrease over time. Yet, the need for tangible improvements in top-line growth without margin erosion is crucial for a more favorable stock rating.
Based on the recent corporate insider activity of 81 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of GDDY in relation to earlier this year.