A puzzling market dynamic emerged around GoDaddy Inc. shares late last week. The web hosting and domain registration giant significantly upgraded its full-year financial guidance, yet investors responded by pushing the stock lower, creating a notable disconnect between corporate optimism and market sentiment.
Revised Outlook Signals Operational Strength
In a display of confidence, GoDaddy’s management substantially raised its 2025 financial projections. The company now anticipates full-year revenue between $4.89 billion and $4.94 billion, representing approximately 7% growth. Even more impressive was the upward revision to free cash flow expectations, now targeting around $1.6 billion—an increase exceeding 18% from previous forecasts. Company executives simultaneously reaffirmed their commitment to existing 2026 financial targets.
Market Response Defies Positive Fundamentals
Despite these encouraging developments, GoDaddy’s stock closed Friday’s session down 1.6% at €123. The trading activity revealed particularly heavy interest, with volume exceeding 3.5 million shares—well above average levels—indicating substantial market participation. This divergence suggests that concerns among investors outweighed the positive fundamental news from the company.
Should investors sell immediately? Or is it worth buying GoDaddy?
Growing Short Interest Raises Questions
One potential explanation for the skeptical market reaction lies in recent short interest data. During August, the number of shares sold short surged by nearly 20% to reach 6.39 million, representing approximately 4.7% of the company’s total outstanding shares. This significant increase indicates that a segment of the market continues to anticipate price declines despite the improved financial outlook.
Upcoming Earnings to Provide Clarity
All eyes now turn to GoDaddy’s upcoming third-quarter results, expected in late October or early November. This earnings release will serve as a critical test of whether management can deliver on its upgraded forecasts. Until then, the stock will likely continue to oscillate between its demonstrated fundamental strength and near-term market skepticism.
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