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.
