The Bull Case for GoDaddy (GDDY) Could Change Following Global Launch of AI-Powered Site Designer

• GoDaddy recently launched the global rollout of Airo Site Designer, an AI-powered tool that enables users to build multipage WordPress websites from a simple text prompt, streamlining the process for small business owners.
• This launch directly targets widespread barriers to online entry, aiming to empower less tech-savvy entrepreneurs by making professional website creation faster and more accessible.
• We'll explore how Airo Site Designer's potential to accelerate website launches may impact GoDaddy's ongoing digital integration and recurring revenue streams.

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GoDaddy Investment Narrative Recap

GoDaddy’s investment case centers on its ability to accelerate small business digital adoption while defending its domain and hosting base against mounting competition from platforms like Shopify and Wix. The Airo Site Designer launch could strengthen the company’s recurring revenue catalysts by making AI website creation simpler for first-time entrepreneurs, but the most immediate risk remains whether these AI features meaningfully reduce churn and elevate higher-margin product engagement, a challenge that may not see material change overnight.

Earlier in August 2025, GoDaddy announced a broad expansion of new AI tools within its platform, from enhanced business naming to streamlined storefront customization. This commitment to embedding AI across its core offerings is clearly relevant to the Airo Site Designer rollout, as it points to a push for deeper integration and potentially improved retention among higher-value small business customers.

However, despite GoDaddy’s renewed innovation focus, investors should be aware that the company’s reliance on upselling and customer bundling carries risks if new AI-driven experiences...

Read the full narrative on GoDaddy (it's free!)

GoDaddy's narrative projects $5.9 billion revenue and $1.3 billion earnings by 2028. This requires 7.7% yearly revenue growth and an earnings increase of $491.5 million from $808.5 million today.

Uncover how GoDaddy's forecasts yield a $192.53 fair value, a 33% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members estimate GoDaddy’s fair value between US$110.50 and US$253.18, based on 4 different analyses. While AI-driven product adoption is a key catalyst, competition and churn trends could weigh heavily on long-term returns, so consider several perspectives before acting.

Explore 4 other fair value estimates on GoDaddy - why the stock might be worth 24% less than the current price!

Build Your Own GoDaddy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free GoDaddy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate GoDaddy's overall financial health at a glance.

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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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