GoDaddy (GDDY): Assessing Valuation After Upbeat Q3 Results and Raised 2025 Growth Outlook

GoDaddy (GDDY) just announced its third quarter results, showing growth in both revenue and net income compared to last year. In addition to earnings, management raised their 2025 revenue outlook to 8% growth.

See our latest analysis for GoDaddy.

GoDaddy’s upbeat earnings and new guidance helped spark a 5% jump in its share price in a single day, hinting that investors are warming up to its growth story again. Momentum has been lacking over the past several months, with a -16% share price return in the last 90 days and a -33% year-to-date result. These numbers contrast with much stronger long-term performance, as GoDaddy’s total shareholder return is 97% over three years and 78% over five years, showing real staying power when the bigger picture is considered.

If upbeat tech results have you looking for other growth potential, this could be the perfect opportunity to discover fast growing stocks with high insider ownership.

With shares still well below analyst targets and trading at a nearly 50% discount to some intrinsic value estimates, could GoDaddy be offering a compelling entry point? Or is the market already factoring in the company’s improved outlook?

Most Popular Narrative: 29.1% Undervalued

The most widely followed narrative now sees GoDaddy’s fair value at $187.75 per share, a solid premium to the latest close of $133.13. The valuation captures optimism around the company’s recurring revenue model and expansion into AI-driven digital services, but sets a high bar for future performance.

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. This is improving revenue predictability and EBITDA margin expansion, with a target of 33% by 2026.

Read the complete narrative.

Want to know the ambitious projections that justify this sizeable valuation gap? Behind this price are growth forecasts and margin assumptions that would shift GoDaddy’s profitability profile closer to elite software companies. Which metrics matter most for this target? Find out exactly what’s powering this bullish outlook.

Result: Fair Value of $187.75 (UNDERVALUED)

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

However, persistent competition from all-in-one cloud platforms and a potential drop in small business demand could challenge GoDaddy’s bullish narrative in the future.

Find out about the key risks to this GoDaddy narrative.

Build Your Own GoDaddy Narrative

If you see the story differently or want to analyze the numbers for yourself, you can craft an alternative narrative 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.

Looking for more investment ideas?

Smart investors seize the moment and expand their watchlists with tomorrow’s opportunities. Don’t miss your edge by adding these powerful new themes before the crowd catches on:

• Unlock potential with these 840 undervalued stocks based on cash flows that cash flow experts believe are trading below their true worth.
• Capture high yields and reliable income by exploring these 22 dividend stocks with yields > 3% for stocks offering market-beating payouts over 3%.
• Ride the AI wave and power your portfolio by exploring these 26 AI penny stocks taking the lead in artificial intelligence innovation.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com