Based on the provided data and recent news, here's a comprehensive analysis of GDDY's price prediction for 2025:
Technical Analysis
The current technical indicators show:
- RSI (14) at 24.33 indicates oversold conditions
- MACD is bearish with -6.49 and divergence of -4.58
- Stock is trading below all major moving averages (5,10,20-day SMAs)
- Current price ($173.10) is significantly below the 20-day Bollinger Band middle line ($202.51)
Fundamental Drivers
Recent Q4 2024 earnings report revealed:
- Revenue grew 8% YoY to $1.192B
- EPS of $1.36 missed estimates of $1.43
- Free cash flow increased 12% to $342M
- Company guidance for FY2025:
- Revenue: $4.86B-$4.94B
- Normalized EBITDA margin ~30%
- Free cash flow target: $1.5B
Analyst Outlook
Recent analyst updates:
- Piper Sandler: Price target raised to $177 (Neutral)
- Morgan Stanley: Price target raised to $228 (Equal-Weight)
2025 Price Prediction
Based on the analysis, here are the three potential scenarios:
- Base Case ($205-215):
- Successful execution of AI initiatives (GoDaddy Airo)
- Meeting guided revenue and margin targets
- Probability: 60%
- Bull Case ($225-235):
- Exceeding free cash flow target of $1.5B
- Higher than expected AI adoption
- Probability: 25%
- Bear Case ($165-175):
- Competitive pressures intensifying
- Margin compression
- Probability: 15%
Most likely scenario: Base Case with a target of $210, representing ~21% upside from current levels, driven by:
- Strong free cash flow generation
- AI-powered growth initiatives
- Margin expansion opportunities