GDDY Should I Buy
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GoDaddy Inc. (GDDY) is not a strong buy for a beginner, long-term investor at this time. The technical indicators suggest a bearish trend, and while the company has shown consistent financial growth, the stock is currently oversold and lacks strong positive catalysts to justify immediate entry. Waiting for clearer signals of recovery or positive momentum would be prudent.
The stock is exhibiting bearish momentum with MACD below 0 and negatively expanding, RSI at 16.977 indicating oversold conditions, and bearish moving averages (SMA_200 > SMA_20 > SMA_5). The current price is below key support levels, with S1 at 90.019 and S2 at 86.767.
Hedge funds are significantly increasing their positions in GDDY, with a 1851.02% increase in buying over the last quarter.
The company has a strong stock buyback program totaling $5.2 billion over four years.
Consistent profitability since 2017 and revenue growth of 10.26% YoY in Q3 2025.
Concerns about AI's impact on traditional software companies following the launch of Anthropic's Claude Cowork.
Broader market volatility with SP500 down 1.54%.
Bearish technical indicators and lack of immediate positive momentum.
In Q3 2025, GoDaddy's revenue increased by 10.26% YoY to $1.265 billion, net income rose by 10.50% YoY to $210.5 million, and EPS grew by 14.39% YoY to 1.51. However, gross margin dropped slightly by -1.46% YoY to 60.74%.
Analysts have recently lowered price targets for GDDY, with Cantor Fitzgerald reducing it to $130 and Jefferies to $140, both citing macro concerns and the need for more meaningful AI-driven growth. The sentiment is neutral, with analysts maintaining Hold or Neutral ratings.
