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GoDaddy Stock: Undervalued Amid AI Push and Solid Earnings

Felix Baarz by Felix Baarz
August 8, 2025
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GoDaddy’s stock has plunged to $138.19, far below analyst targets of $150–$250, despite strong Q2 earnings and optimistic guidance. The web-hosting giant reported $1.41 EPS, beating estimates, with revenue hitting $1.21 billion—meeting expectations. Yet, shares have dropped 32% since Q4, puzzling investors as analysts reaffirm bullish ratings, including a $250 price target from Benchmark. The company’s focus on expanding AI and coding capabilities, alongside its managed cloud platform upgrades, signals a push into premium services. Management plans to unveil detailed AI product strategies at an upcoming investor event, leveraging first-party domain data as a competitive edge.

Market Skepticism vs. Fundamentals

Despite a 26% six-month decline and a 52-week low of $148.55, GoDaddy’s fundamentals remain robust: Q2 profit surged to $199.9 million, up from $146.3 million year-over-year, with revenue growing 8.3%. Analysts cite strong free cash flow projections ($1.5+ billion by 2025) and consistent performance as reasons for optimism. However, concerns over customer metrics and Applications & Commerce bookings may explain the disconnect. With shares trading at a 40% discount to average targets, the market’s hesitation contrasts sharply with the company’s operational strength.

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Felix Baarz

Felix Baarz

My name is Felix Baarz, and I look back on over fifteen years of experience as a business journalist. I have always been fascinated by the mechanisms and dynamics of global financial markets as well as the complex economic and political interconnections that shape our world. With this passion, I have made a name for myself as an expert on international financial markets and dedicate myself with great commitment to making even the most complex topics understandable and accessible to my readers. My roots lie in Cologne, where I was born and raised. Early on, my curiosity about economic topics and international developments sparked my interest in journalism. After completing my studies, I began my career as a business editor at a respected German trade publication. Here I laid the foundation for my professional career, but my curiosity soon drew me out into the wider world. A turning point in my life was moving to New York, where I lived for six years and gained insight into leading media houses. In this vibrant metropolis, I was able to report firsthand from the heart of the global financial world. From daily developments on Wall Street to major economic policy decisions that make waves worldwide, I had the opportunity to write about central topics that move people and markets alike. This time shaped my perspective and sharpened my view of global interconnections.

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