GoDaddy (GDDY): Exploring Valuation After Launch of AI Agent Identity Verification Framework

GoDaddy (GDDY) is rolling out a new naming and identity verification system for AI agents, building on its experience in domains and internet security. This move aims to bring authentication and trust to a fast-growing digital landscape.

See our latest analysis for GoDaddy.

GoDaddy’s announcement comes after an active quarter, including a presentation at HashiConf 2025 and steady growth in core web services. Even as investor concerns about AI competition briefly weighed on the stock, GoDaddy’s long-term total shareholder return remains solid, with positive three-year and five-year figures that reflect ongoing momentum and resilience.

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With shares below analyst targets and mixed signals about future growth, a key question emerges for investors: does GoDaddy’s recent performance signal an undervalued opportunity, or is the market already accounting for its next move higher?

Most Popular Narrative: 28.7% Undervalued

With GoDaddy's fair value narrative set well above the recent $135 closing price, the story behind the calculation hinges on recurring revenue and future margin expansion. This viewpoint highlights how strategic pivots and technological upgrades are shifting long-term value expectations in a competitive space.

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.

Want to know what powers this valuation jump? The underlying assumptions point to transformative margin gains and a new revenue mix. What exactly are analysts expecting to change in GoDaddy's business over the next few years? Find out the pivotal metrics and growth bets within this popular narrative.

Result: Fair Value of $189.29 (UNDERVALUED)

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

However, ongoing competition from integrated platforms and potential customer churn could undermine GoDaddy’s margin expansion and challenge the resilience of its growth outlook.

Find out about the key risks to this GoDaddy narrative.

Build Your Own GoDaddy Narrative

If you see the outlook differently or want to dive into the numbers firsthand, it takes just a few minutes to craft your own take. Do it your way.

A great starting point for your GoDaddy research is our analysis highlighting 4 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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