GoDaddy Inc. Shows Strong Growth Amid Market Trends
Valued at a market cap of $28.6 billion, GoDaddy Inc. (GDDY) specializes in creating cloud-based products tailored for small businesses, web design professionals, and individual users. Headquartered in Tempe, Arizona, the company is recognized as an internet domain registrar and web hosting provider, offering various e-business software and services.
Tracking GoDaddy’s Market Performance
GoDaddy is categorized as a “large-cap” stock since its market cap surpasses $10 billion. The software provider boasts a range of website-building tools and exceptional 24/7 customer support, appealing to over 22 million customers. Its revenue streams include three main segments: Domains, Hosting and Presence Offerings, and Business Applications.
Recent Stock Movements
Currently, GDDY is trading 5.5% below its 52-week high of $211.11, achieved on December 16. In the last three months, shares have risen by 27.2%, outperforming the broader Technology Select Sector SPDR Fund’s (XLK) modest increase of 3.9% during the same period.
Over a longer horizon, GDDY has surged by 87.9% compared to the 21.8% returns of XLK in the past year. In the last six months, GDDY increased by 42.8%, significantly outpacing XLK’s gains of 3.6%.
Positive Trends in Trading
In a clear sign of a bullish trend, GoDaddy has been consistently trading above its 200-day moving average for the past year and has stayed above its 50-day moving average since early October.
Impressive Q3 Results
After releasing strong Q3 results on October 30, GDDY shares rose by 3.2%. The company reported significant revenue growth in its Applications and Commerce (A&C) segment, leading to a 7.3% annual increase in total revenues, reaching $1.15 billion. A noteworthy 420-basis points expansion in normalized EBITDA margin and a 650-basis points operating margin increase from the previous year contributed to an impressive 48.3% year-over-year rise in earnings per share (EPS) to $1.32. Both figures exceeded Wall Street expectations.
Updated Financial Guidance
Reflecting confidence from its solid Q3 performance, GoDaddy has raised its 2024 revenue guidance to a range of $4.545 billion to $4.565 billion and adjusted its normalized EBITDA margin expectations to around 30%. This update likely reassured investors about the company’s future prospects.
Comparing GoDaddy to Competitors
GoDaddy’s strong performance stands in contrast to its competitor, Wix.com Ltd. (WIX), which saw a 76.7% rise over the past year and a 36.7% increase in six months.
Analyst Outlook
Analysts have a moderately optimistic view on GoDaddy’s future. With a consensus rating of “Moderate Buy” from 17 analysts, the average price target stands at $201.53, indicating a slight 1% premium over current trading levels.
On the date of publication,
Neharika Jain
did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For further details, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
