GoDaddy: AI-Driven Profit Growth Amid Stock Sell-Off
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9 hours ago
0mins
Should l Buy GDDY?
Source: Fool
- AI-Driven Profitability: GoDaddy's Q3 revenue rose 10% year-over-year to $1.3 billion, with operating income surging 17%, reflecting the successful integration of AI technologies that enhance operational efficiency and profitability.
- Launch of New Platform: In early 2024, GoDaddy introduced its AI platform Airo, which assists customers in building websites and creating logos, contributing to accelerated revenue growth and demonstrating the company's commitment to technological innovation.
- Stock Buyback Program: The company repurchased nearly $1.4 billion of its shares in the first three quarters and has $2.4 billion remaining on its buyback authorization, indicating management's proactive approach to returning value to shareholders amid current undervaluation.
- Attractive Valuation: With a market cap of approximately $12 billion, GoDaddy trades at over 8 times its trailing free cash flow, which is growing by over 20%, making it one of the most appealing investment opportunities in nearly a decade.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GDDY?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GDDY
Wall Street analysts forecast GDDY stock price to rise
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 88.260
Low
85.00
Averages
166.38
High
240.00
Current: 88.260
Low
85.00
Averages
166.38
High
240.00
About GDDY
GoDaddy Inc. is engaged in serving a market of entrepreneurs, developing and delivering easy-to-use products in a one-stop shop solution alongside personalized guidance. The Company serves small businesses, individuals, organizations, developers, designers and domain investors. The Company's segments include Applications and Commerce (A&C) and Core Platform (Core). The A&C segment primarily consists of sales of products containing proprietary software, notably its Website building products, as well as its commerce products and third-party email and productivity solutions and sales of certain products when they are included in bundled offerings of its proprietary software products. The Core segment primarily consists of sales of domain registrations and renewals, aftermarket domain sales, Website hosting products and Website security products when not included in bundled offerings of its proprietary software products, as well as sales of products not containing a software component.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
GoDaddy: AI-Driven Profit Growth Amid Stock Sell-Off
- AI-Driven Profitability: GoDaddy's Q3 revenue rose 10% year-over-year to $1.3 billion, with operating income surging 17%, reflecting the successful integration of AI technologies that enhance operational efficiency and profitability.
- Launch of New Platform: In early 2024, GoDaddy introduced its AI platform Airo, which assists customers in building websites and creating logos, contributing to accelerated revenue growth and demonstrating the company's commitment to technological innovation.
- Stock Buyback Program: The company repurchased nearly $1.4 billion of its shares in the first three quarters and has $2.4 billion remaining on its buyback authorization, indicating management's proactive approach to returning value to shareholders amid current undervaluation.
- Attractive Valuation: With a market cap of approximately $12 billion, GoDaddy trades at over 8 times its trailing free cash flow, which is growing by over 20%, making it one of the most appealing investment opportunities in nearly a decade.
See More
GoDaddy CFO to Present at Morgan Stanley Conference
- Conference Details: GoDaddy's CFO Mark McCaffrey is scheduled to present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco on March 2, 2026, at 11:30 a.m. ET / 8:30 a.m. PT, highlighting the company's strategic positioning in the industry.
- Investor Relations: The event will feature live audio webcasts and post-presentation replays available on GoDaddy's Investor Relations website, ensuring investors can stay updated on the company's latest developments, thereby enhancing transparency and communication efficiency.
- Company Overview: As the world's largest domain name registrar, GoDaddy assists millions of entrepreneurs globally in starting, growing, and scaling their businesses, providing comprehensive services from naming ideas to website creation and payment acceptance, showcasing its significant role in the digital economy.
- AI-Powered Services: GoDaddy Airo® is the company's AI-driven experience designed to help small businesses quickly get their ideas online, drive traffic, and boost sales, further solidifying its competitive advantage in the small business market.
See More
GoDaddy CFO to Present at Morgan Stanley Conference
- Conference Details: GoDaddy CFO Mark McCaffrey will present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco on March 2, 2026, at 11:30 a.m. ET, highlighting the company's leadership in the industry.
- Investor Relations: The event will feature live audio webcasts and post-presentation replays, enhancing communication and transparency between GoDaddy and its investors through its Investor Relations website.
- Company Overview: As the world's largest domain name registrar, GoDaddy plays a crucial role in helping millions of entrepreneurs globally to start, grow, and scale their businesses, showcasing its commitment to supporting small enterprises.
- AI-Powered Business Growth: GoDaddy Airo®, the company's AI-driven experience, facilitates faster online presence and sales growth for small businesses, reflecting the company's ongoing investment in technological innovation and customer support.
See More
GoDaddy's Stock Buybacks and Growth Outlook
- Consistent Profitability: GoDaddy has achieved non-GAAP profitability every year since 2017, with projected revenue of around $5 billion for 2025, reflecting its stability and resilience in a competitive tech landscape.
- Market Growth Potential: Global website registrations reached 386.9 million in Q4 2025, with the web hosting industry expected to grow at an average annual rate of over 23% to $356 billion, positioning GoDaddy to benefit significantly from this expansion.
- AI-Driven Innovation: GoDaddy's recent update to its generative AI site-building platform, Airo, has driven a 10% year-over-year increase in average revenue per user (ARPU), likely enhancing the company's high-margin revenue and cash flow.
- Stock Buyback Strategy: In the first three quarters of 2025, GoDaddy repurchased $1.4 billion worth of 137 million shares, bringing its total buyback to $5.2 billion over four years, which has propelled per-share profit growth and reflects the company's confidence in its value.
See More
Software Companies Face AI Disruption
- Market Reaction Analysis: Following the launch of Anthropic's Claude Cowork, software companies like Shopify, Monday.com, and Fastly saw stock declines of 23%, 15%, and 16% respectively, indicating investor concerns over AI potentially replacing traditional software, which may lead to a reevaluation of investment strategies.
- Industry Trend Observation: Despite surging AI spending and major players like Meta and Alphabet pushing forward, the future of software companies remains uncertain, particularly for those reliant on single-function products, which may face greater risks of obsolescence.
- Job Market Dynamics: Recent data shows that January layoffs reached the highest level since 2009, with job openings falling to the lowest since 2020, reflecting adjustments in labor demand as companies navigate economic recovery, potentially linked to the rise of AI technologies.
- Investment Strategy Adjustment: Analysts recommend focusing on mission-critical software companies like CrowdStrike and Toast, which may remain stable amid the AI wave due to their essential business functions, urging investors to be selective in navigating market volatility.
See More
Software Companies Face AI Disruption
- Significant Market Reaction: Following Anthropic's launch of Claude Cowork, software companies like Shopify, Monday.com, and Fastly saw stock declines of 23%, 15%, and 15% respectively, indicating investor concerns over AI potentially replacing traditional software, which could lead to a reevaluation of these companies' long-term value.
- Surge in AI Spending: While AI spending continues to rise, software companies are facing intensified competitive pressures, particularly those reliant on single-function offerings like HubSpot and Atlassian, which may experience greater market disruption, impacting their future profitability.
- Clear Industry Differentiation: Analysts categorize software companies into three groups: large software leaders like Microsoft, critical ecosystem companies like Shopify, and those with singular functions, with the latter facing higher risks in the wake of AI advancements, potentially leading to market share erosion.
- Job Market Fluctuations: Recent data shows that layoffs in January 2026 reached the highest level since 2009, and while the overall unemployment rate remains within historical averages, this trend may reflect companies adjusting their hiring strategies in light of AI investments and efficiency improvements, affecting future recruitment plans.
See More
GoDaddy: AI-Driven Profit Growth Amid Stock Sell-Off
- AI-Driven Profitability: GoDaddy's Q3 revenue rose 10% year-over-year to $1.3 billion, with operating income surging 17%, reflecting the successful integration of AI technologies that enhance operational efficiency and profitability.
- Launch of New Platform: In early 2024, GoDaddy introduced its AI platform Airo, which assists customers in building websites and creating logos, contributing to accelerated revenue growth and demonstrating the company's commitment to technological innovation.
- Stock Buyback Program: The company repurchased nearly $1.4 billion of its shares in the first three quarters and has $2.4 billion remaining on its buyback authorization, indicating management's proactive approach to returning value to shareholders amid current undervaluation.
- Attractive Valuation: With a market cap of approximately $12 billion, GoDaddy trades at over 8 times its trailing free cash flow, which is growing by over 20%, making it one of the most appealing investment opportunities in nearly a decade.
See More
GoDaddy CFO to Present at Morgan Stanley Conference
- Conference Details: GoDaddy's CFO Mark McCaffrey is scheduled to present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco on March 2, 2026, at 11:30 a.m. ET / 8:30 a.m. PT, highlighting the company's strategic positioning in the industry.
- Investor Relations: The event will feature live audio webcasts and post-presentation replays available on GoDaddy's Investor Relations website, ensuring investors can stay updated on the company's latest developments, thereby enhancing transparency and communication efficiency.
- Company Overview: As the world's largest domain name registrar, GoDaddy assists millions of entrepreneurs globally in starting, growing, and scaling their businesses, providing comprehensive services from naming ideas to website creation and payment acceptance, showcasing its significant role in the digital economy.
- AI-Powered Services: GoDaddy Airo® is the company's AI-driven experience designed to help small businesses quickly get their ideas online, drive traffic, and boost sales, further solidifying its competitive advantage in the small business market.
See More
GoDaddy CFO to Present at Morgan Stanley Conference
- Conference Details: GoDaddy CFO Mark McCaffrey will present at the Morgan Stanley Technology, Media & Telecom Conference in San Francisco on March 2, 2026, at 11:30 a.m. ET, highlighting the company's leadership in the industry.
- Investor Relations: The event will feature live audio webcasts and post-presentation replays, enhancing communication and transparency between GoDaddy and its investors through its Investor Relations website.
- Company Overview: As the world's largest domain name registrar, GoDaddy plays a crucial role in helping millions of entrepreneurs globally to start, grow, and scale their businesses, showcasing its commitment to supporting small enterprises.
- AI-Powered Business Growth: GoDaddy Airo®, the company's AI-driven experience, facilitates faster online presence and sales growth for small businesses, reflecting the company's ongoing investment in technological innovation and customer support.
See More
GoDaddy's Stock Buybacks and Growth Outlook
- Consistent Profitability: GoDaddy has achieved non-GAAP profitability every year since 2017, with projected revenue of around $5 billion for 2025, reflecting its stability and resilience in a competitive tech landscape.
- Market Growth Potential: Global website registrations reached 386.9 million in Q4 2025, with the web hosting industry expected to grow at an average annual rate of over 23% to $356 billion, positioning GoDaddy to benefit significantly from this expansion.
- AI-Driven Innovation: GoDaddy's recent update to its generative AI site-building platform, Airo, has driven a 10% year-over-year increase in average revenue per user (ARPU), likely enhancing the company's high-margin revenue and cash flow.
- Stock Buyback Strategy: In the first three quarters of 2025, GoDaddy repurchased $1.4 billion worth of 137 million shares, bringing its total buyback to $5.2 billion over four years, which has propelled per-share profit growth and reflects the company's confidence in its value.
See More
Software Companies Face AI Disruption
- Market Reaction Analysis: Following the launch of Anthropic's Claude Cowork, software companies like Shopify, Monday.com, and Fastly saw stock declines of 23%, 15%, and 16% respectively, indicating investor concerns over AI potentially replacing traditional software, which may lead to a reevaluation of investment strategies.
- Industry Trend Observation: Despite surging AI spending and major players like Meta and Alphabet pushing forward, the future of software companies remains uncertain, particularly for those reliant on single-function products, which may face greater risks of obsolescence.
- Job Market Dynamics: Recent data shows that January layoffs reached the highest level since 2009, with job openings falling to the lowest since 2020, reflecting adjustments in labor demand as companies navigate economic recovery, potentially linked to the rise of AI technologies.
- Investment Strategy Adjustment: Analysts recommend focusing on mission-critical software companies like CrowdStrike and Toast, which may remain stable amid the AI wave due to their essential business functions, urging investors to be selective in navigating market volatility.
See More
Software Companies Face AI Disruption
- Significant Market Reaction: Following Anthropic's launch of Claude Cowork, software companies like Shopify, Monday.com, and Fastly saw stock declines of 23%, 15%, and 15% respectively, indicating investor concerns over AI potentially replacing traditional software, which could lead to a reevaluation of these companies' long-term value.
- Surge in AI Spending: While AI spending continues to rise, software companies are facing intensified competitive pressures, particularly those reliant on single-function offerings like HubSpot and Atlassian, which may experience greater market disruption, impacting their future profitability.
- Clear Industry Differentiation: Analysts categorize software companies into three groups: large software leaders like Microsoft, critical ecosystem companies like Shopify, and those with singular functions, with the latter facing higher risks in the wake of AI advancements, potentially leading to market share erosion.
- Job Market Fluctuations: Recent data shows that layoffs in January 2026 reached the highest level since 2009, and while the overall unemployment rate remains within historical averages, this trend may reflect companies adjusting their hiring strategies in light of AI investments and efficiency improvements, affecting future recruitment plans.
See More
