GoDaddy (GDDY): Has the Recent Share Price Slide Opened Up an Undervalued Opportunity?

GoDaddy (GDDY) has quietly slipped over the past month, with the stock down about 4% and roughly 13% in the past 3 months. This invites a closer look at what investors might be missing.

See our latest analysis for GoDaddy.

That recent slide sits against a much stronger backdrop, with GoDaddy still boasting a solid multi year total shareholder return. However, the year to date share price return has turned sharply negative around $126.05, suggesting momentum has faded while growth expectations are being reassessed.

If GoDaddy’s wobble has you reassessing your tech exposure, it could be a good moment to explore other high growth tech and AI stocks that are capturing stronger momentum and fresh growth stories.

With shares still trading well below analyst targets despite solid multi year returns and double digit earnings growth, the key question now is whether GoDaddy is quietly undervalued or if the market has already priced in its future growth.

Most Popular Narrative: 28% Undervalued

GoDaddy's most followed narrative pegs fair value well above the recent 126.05 close. This frames the slide as a potential disconnect rather than a trend reversal.

The analysts have a consensus price target of $192.529 for GoDaddy based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $250.0, and the most bearish reporting a price target of just $150.0.

Read the complete narrative.

Want to see why steady revenue gains, rising margins and shrinking share count might justify a much richer future earnings multiple? The full narrative lays out the bold assumptions driving that gap between price and perceived value.

Result: Fair Value of $175.06 (UNDERVALUED)

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

However, rising competition from integrated no code platforms and persistent customer churn could derail margin expansion and challenge assumptions behind GoDaddy’s undervaluation narrative.

Find out about the key risks to this GoDaddy narrative.

Build Your Own GoDaddy Narrative

If this view does not fully align with your own or you prefer hands on research, you can build a personalised GoDaddy story in 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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