GoDaddy (GDDY) AI Stock Analysis

• Market Cap: $23.52B
• Dividend Yield: N/A
• Average Volume (3M): 1.35M
• Price to Earnings (P/E): 31.5
• Beta (1Y): 1.08
• Revenue Growth: 7.93%
• EPS Growth: -56.44%
• Country: US
• Employees: 5,518
• Sector: Technology
• Sector Strength: 95
• Industry: Software - Infrastructure
• EPS (TTM): 1.51
• Shares Outstanding: 142,488,190
• 10 Day Avg. Volume: 1,459,395
• 30 Day Avg. Volume: 1,346,116
• PEG Ratio: -1.62
• Price to Book (P/B): 117.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.19
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 3.49
• Enterprise Value/Gross Profit: 22.91
• Enterprise Value/Ebitda: 43.33
• 1Y Price Target: $217.00
• Price Target Upside: 32.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 67 Neutral
• Price Target: $193.00 ▲(17.77%Upside)

GoDaddy's overall stock score is bolstered by strong earnings call performance and solid financials, particularly in revenue and cash flow. However, high balance sheet leverage and a relatively high P/E ratio weigh on the score. Technical indicators are neutral, suggesting no clear market direction.

Positive Factors

Earnings growth

A shift to a more profitable revenue mix and automation improvements are seen as immediate catalysts for GoDaddy's earnings growth.

Product adoption

GoDaddy is well positioned to drive better-than-expected ARPU accretion from new product adoption, AI efficiencies, and product bundling momentum.

Shareholder value

GoDaddy's capital allocation strategy includes a significant focus on stock buybacks, enhancing shareholder value.

Negative Factors

Competition

GoDaddy faces potential threats from new AI entrants and vibe coding players, although it is believed to be better positioned due to its integrated services and brand recognition.

Market sentiment

Sentiment remains cautious on GDDY shares, particularly given fundamental improvements the company has delivered over the last 18 months.

GoDaddy Business Overview & Revenue Model

Company Description

GoDaddy Inc. engages in the design and development of cloud-based technology products in the United States and internationally. The company provides domain name registration product that enables to engage customers at the initial stage of establishing a digital identity. It also offers shared Website hosting products that provide various applications and products, such as web analytics, Secure Sockets Layer certificates, and WordPress; Website hosting on virtual private servers and virtual dedicated servers products, which allows customers to select the server configuration suited for their applications, requirements, and growth; managed hosting products to set up, monitor, maintain, secure, and patch software and servers for customers; and security products, a suite of tools designed to help secure customers' online presence. In addition, the company provides presence products, such as Websites + Marketing, a do-it-yourself mobile-optimized online tool that enables customers to build websites and e-commerce enabled online stores; a range of marketing tools and services designed to help businesses acquire and engage customers, and create content, as well as search engine optimization that helps customers get their websites found on search sites; and social media management services. Further, it offers business application products, such as Microsoft Office 365, email accounts, email marketing, and Internet-based telephony services; online store capabilities that allows customers to transact business directly on their websites; GoDaddy Payments, a payment facilitator; and point-of-sale (POS) devices, as well as software for POS. The company serves small businesses, individuals, organizations, developers, designers, and domain investors. GoDaddy Inc. was incorporated in 2014 and is headquartered in Tempe, Arizona.

How the Company Makes Money

GoDaddy generates revenue through a diverse range of products and services designed to help users establish and maintain their online presence. The company's primary revenue streams include domain name registrations, which account for a significant portion of its income by charging annual fees for domain name ownership. Web hosting and website building services also contribute to its revenue, as they provide customers with the infrastructure and tools needed to create and manage their websites. Additionally, GoDaddy earns money through its business applications segment, which offers a variety of productivity and marketing tools, including email hosting, online store capabilities, and search engine optimization services. The company also benefits from strategic partnerships and collaborations with other technology firms, expanding its service offerings and market reach. Furthermore, GoDaddy's focus on customer retention and upselling existing customers with additional services plays a crucial role in its financial performance.

GoDaddy Financial Statement Overview

Summary

GoDaddy's financial performance is strong in terms of revenue growth and cash flow generation. However, the balance sheet's high leverage is a concern, and despite improvements in equity, it remains low. Cash flow is a key strength, offering financial flexibility.

Income Statement

GoDaddy has shown consistent revenue growth over the years, increasing from $3.32 billion in 2020 to $4.66 billion in TTM 2025. The gross profit margin remains strong, reflecting efficient cost management, while the net profit margin has seen a positive trend despite a dip in TTM 2025. EBIT and EBITDA margins indicate solid operational profitability, although the recent decline in EBIT margin suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a high level of liabilities compared to equity, with a debt-to-equity ratio that indicates significant leverage. The improvement in stockholders' equity by TTM 2025 is encouraging, but overall equity levels remain low. The equity ratio is low, suggesting a reliance on debt financing. Return on Equity (ROE) has improved, showcasing better profitability with existing equity.

Cash Flow

GoDaddy's cash flow is robust, with strong free cash flow growth and a high operating cash flow to net income ratio. The company has effectively managed its capital expenditures, maintaining positive free cash flow. The free cash flow to net income ratio is healthy, indicating efficient conversion of profits to cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.57B	4.25B	4.09B	3.82B	3.32B
Gross Profit	2.92B	2.68B	2.61B	2.44B	2.16B
EBITDA	1.07B	821.60M	744.20M	659.60M	-198.10M
Net Income	936.90M	1.37B	352.20M	242.30M	-494.10M
Balance Sheet
Total Assets	8.24B	7.56B	6.97B	7.42B	6.43B
Cash, Cash Equivalents and Short-Term Investments	1.09B	498.80M	774.00M	1.26B	765.20M
Total Debt	3.87B	3.94B	3.95B	4.03B	3.28B
Total Liabilities	7.54B	7.50B	7.30B	7.33B	6.44B
Stockholders Equity	692.10M	62.20M	-331.80M	81.70M	-12.90M
Cash Flow
Free Cash Flow	1.26B	970.20M	919.60M	576.10M	683.10M
Operating Cash Flow	1.29B	1.05B	979.70M	829.30M	764.60M
Investing Cash Flow	21.50M	-102.40M	-132.00M	-635.60M	-482.30M
Financing Cash Flow	-677.40M	-1.26B	-1.33B	298.10M	-581.70M

GoDaddy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 163.88
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDDY, the sentiment is Negative. The current price of 163.88 is below the 20-day moving average (MA) of 169.87, below the 50-day MA of 176.07, and below the 200-day MA of 183.83, indicating a bearish trend. The MACD of -3.29 indicates Positive momentum. The RSI at 29.11 is Positive, neither overbought nor oversold. The STOCH value of 13.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GDDY.

GoDaddy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TOST	76 Outperform	$28.31B	207.04	11.06%	―	26.72%	―
GDDY	67 Neutral	$23.52B	31.46	245.70%	―	7.93%	-56.44%
OKTA	67 Neutral	$17.33B	154.90	2.08%	―	13.51%	―
DBX	66 Neutral	$7.86B	18.10	-60.11%	―	0.79%	0.59%
VRSN	65 Neutral	$25.92B	33.12	-72.04%	0.29%	4.59%	0.26%
Sector *	62 Neutral	$34.85B	5.63	-12.19%	2.01%	5.91%	-17.91%
WIX	58 Neutral	$8.26B	56.30	-46.79%	―	12.89%	123.39%

GoDaddy Corporate Events

GoDaddy Stockholders Approve Key Amendments in June 2025

At the 2025 annual meeting held on June 4, GoDaddy Inc. stockholders approved amendments to the company’s Certificate of Incorporation and Bylaws. These changes include limiting officer liability, eliminating references to a classified board structure, and removing Class B common stock references. Additionally, the meeting saw the election of nine directors, approval of executive compensation, and ratification of Ernst & Young LLP as the independent auditor for 2025.

The most recent analyst rating on (GDDY) stock is a Buy with a $224.00 price target. To see the full list of analyst forecasts on GoDaddy stock, see the GDDY Stock Forecast page.