GoDaddy (GDDY): Assessing Valuation After Recent Earnings and Long-Term Return Trends

GoDaddy (GDDY) shares have moved slightly this week, catching investor attention after the company reported annual net income growth of 14% and revenue up 6% year-over-year. These steady results offer a snapshot into GoDaddy's current momentum.

See our latest analysis for GoDaddy.

GoDaddy’s share price has faced notable headwinds this year, with a year-to-date decline of 33.62%. However, despite recent selling, its longer-term total shareholder returns remain robust, showing a 78% gain over the past three years. This combination of short-term volatility and long-term growth indicates that market sentiment is shifting. Still, the company’s potential is far from written off.

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With GoDaddy trading at a significant discount to both analyst price targets and estimates of intrinsic value, investors are left to weigh whether the market is missing GoDaddy’s growth story or if it is correctly pricing in what lies ahead.

Most Popular Narrative: 29.7% Undervalued

GoDaddy's most broadly followed narrative pegs fair value at $187.75, which stands well above the last close of $132.03. This gap between fair value and current price has the market weighing robust future profit growth against immediate headwinds.

Rapid rollout and growing penetration of AI-powered solutions such as Airo and Ask Airo are leading to higher attach rates, near-perfect retention among higher-intent customer cohorts, greater average order size, and strong ARPU growth (up 10% to $230). These trends are supportive of rising net margins and long-term earnings leverage.

Read the complete narrative.

Curious about what underpins this strong upside? Discover which bold assumptions around future profitability and digital expansion are powering this valuation. The details behind these numbers might surprise you. Dive in to see what could set the agenda for GoDaddy’s next act.

Result: Fair Value of $187.75 (UNDERVALUED)

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

Still, the rapid rise of no-code competitors and persistent customer churn could threaten GoDaddy's growth outlook and challenge even optimistic forecasts.

Find out about the key risks to this GoDaddy narrative.

Build Your Own GoDaddy Narrative

If you see the numbers differently or prefer your own approach, you can quickly craft a personal outlook in just a few minutes: 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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