GoDaddy’s Strong Growth Amid Recent Stock Fluctuations

Tempe, Arizona-based GoDaddy Inc. (GDDY) stands out as a major player in internet domain registration, web hosting, and online business services. With a market capitalization of $25.5 billion, GoDaddy supports millions of entrepreneurs and small enterprises across the globe, offering essential tools to establish and enhance their online presence.

Fitting into the “large-cap stocks” category, companies valued at $10 billion or more, GoDaddy emphasizes its influential position in the internet services sector. As a reliable partner, GoDaddy continues to drive innovation and facilitate the digital transformation of businesses around the world.

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On January 30, GoDaddy achieved an all-time high of $216, but it is currently trading 16.4% below that peak. Over the past three months, GDDY shares have declined 9.3%, marginally better than the Technology Select Sector SPDR Fund’s (XLK) 9.7% drop during the same period.

In contrast to its recent struggles, GoDaddy’s performance over the longer term has been commendable. GDDY stock has surged 16.5% in the last six months and an impressive 44.7% over the past year. This is noteworthy compared to XLK, which has seen a 5.6% decline over the same six months and a modest 1.3% gain over the past year.

To corroborate the overall upward trend despite recent setbacks, GDDY stock has consistently traded above its 200-day moving average in the last year. However, it fell below its 50-day moving average in mid-February, signaling potential short-term weakness.

Following the release of its Q4 earnings on February 13, GoDaddy’s stocks experienced a sharp 14.3% decline after its earnings fell short of analysts’ expectations. Nonetheless, propelled by significant gains in its applications and commerce revenue, the company reported a year-over-year revenue increase of 8.4%, reaching $1.2 billion, surpassing predictions by 1.4%. Despite falling below expectations, GoDaddy’s adjusted earnings per share increased by a notable 31.5% compared to the previous year’s quarter.

While GoDaddy’s recent performance hasn’t matched that of its competitor, VeriSign, Inc. (VRSN), which increased by 36.1% over the past six months, it has outperformed VeriSign’s 33.5% gain over the past 52 weeks.

Among the 18 analysts monitoring GDDY stock, the consensus rating is “Moderate Buy.” The average price target of $223.31 indicates a potential upside of 23.7% from current price levels.

On the date of publication, Aditya Sarawgi 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 solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.