A Look at GoDaddy’s Valuation Following the .CO Registry Exit and Recent Operational Challenges

GoDaddy will cease operating as the registry service provider for the .CO top-level domain. This move is expected to weigh on fourth quarter bookings and revenue. The decision follows ongoing operational challenges for the company.

See our latest analysis for GoDaddy.

While GoDaddy continues to roll out new AI-driven products and expand its digital ads offering into fresh markets, investors remain cautious following the .CO domain exit and ongoing operational headwinds. Momentum has faded this year, with a 33.5% year-to-date share price decline and a negative 18.8% total shareholder return over the past twelve months. This comes even though the company delivered robust double-digit total returns over three and five years.

If you're open to discovering what's next beyond GoDaddy, now may be the perfect moment to explore fast growing stocks with high insider ownership.

With the share price under sustained pressure and signs of further operational headwinds, are investors overlooking GoDaddy's long-term value? Or is the market already factoring in all future growth expectations?

Most Popular Narrative: 30.1% Undervalued

GoDaddy’s most-followed narrative places its fair value estimate at $189, significantly above the last close of $132.27. The gap between these figures sets the tone for discussion around what could fuel future upside from here.

"Large-scale adoption of subscription-based SaaS and bundling initiatives, enabled by accelerated AI-driven product development, is shifting revenue mix toward recurring and higher-margin streams, improving revenue predictability and EBITDA margin expansion (targeting 33% by 2026)."

Read the complete narrative.

Curious why this narrative puts such a high price on GoDaddy? The real action lies in bold assumptions for future revenue growth, transformational margins, and a profit multiple that would rival tech’s top-tier players. None of these numbers are ordinary. Find out what’s driving this valuation.

Result: Fair Value of $189 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, intensifying competition and the risk of customer churn could quickly undermine GoDaddy’s growth assumptions and put future profit margins under pressure.

Find out about the key risks to this GoDaddy narrative.

Build Your Own GoDaddy Narrative

If you think there’s more to the story, or want to dig into the numbers yourself, it’s easy to craft your own perspective in just a few minutes. So why not Do it your way?

A great starting point for your GoDaddy research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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