Stock Price & Analysis

Based on the recent price action and technical indicators, VRSN stock shows a bearish trend in the short term. The stock has declined from $203 to $194 over the past two weeks, breaking below key support levels with increasing volume.

The stock is currently trading at $194.24, showing signs of continued downward momentum. Technical indicators suggest further weakness ahead, with RSI at 81.31 indicating overbought conditions and potential for more downside.

Price Analysis and Forecast

Based on the available data and market analysis, here is the price prediction for VRSN stock in 2025:

VeriSign (VRSN) is expected to reach $238-$240 by the end of 2025, representing a potential upside of approximately 16-17% from current levels. This projection is supported by several key factors:

1. Monopolistic Business Model: VeriSign maintains its exclusive registry for .com and .net domains, operating with consistently high profit margins (55% free cash flow margin).

2. Price Increase Catalyst: Starting 2027, VeriSign can raise prices for .com domains by 7% annually and 10% for .net domains through 2030, which will drive revenue growth even if domain registrations remain flat.

3. Strong Institutional Backing: Berkshire Hathaway has recently increased its stake to become the largest shareholder with nearly 14% ownership, demonstrating confidence in the company's future.

In an optimistic scenario, Citi analysts suggest the stock could reach as high as $312, indicating a potential upside of over 50%. This bullish case would likely require resumed growth in domain registrations and successful price increases.

The current valuation at 24x P/E is well below the stock's median P/E of 31 over the past decade, suggesting potential for multiple expansion.

The S1 support level for VRSN Stock is $219.52 ,The R1 resistant level for VRSN Stock is $234.62.

As of the end of day on 2025-02-21, the price of VRSN Stock was $231.9.

The target price for VRSN Stock according to analyst rating is 252.50, with the highest price target at 255.00 and the lowest at 250.00. Analysts have a Moderate Buy rating on VRSN Stock overall.

The market cap of VRSN is $21.9B.

Based on the provided data and recent market developments, I'll analyze whether VRSN is overvalued:

Technical Analysis The stock is showing overbought signals with RSI-14 at 81.31 and Stochastic RSI at extremely high levels (99+). The stock is trading above all major moving averages (5,10,20,60,200-day), suggesting strong momentum but potential for pullback.

Valuation Assessment

• Current P/E: 26.07x (2023) vs 32.93x (2022)
• EV/EBITDA: 20.96x (2023) vs 22.82x (2022)
• P/S: 14.28x (2023) vs 15.57x (2022)

Business Fundamentals The company maintains a strong monopolistic position in domain registry services with .com and .net domains, generating consistent high margins with 86.79% gross margin and 54.76% net margin in 2023.

Recent Developments Berkshire Hathaway has been actively increasing its stake in VRSN, demonstrating confidence in the company's long-term value proposition despite current valuation levels.

Conclusion VRSN appears moderately overvalued at current levels based on technical indicators showing overbought conditions, though its strong monopolistic position and improving valuation metrics compared to 2022 provide some justification for premium pricing.

VeriSign, Inc. is a global provider of Internet infrastructure and domain name registry services, enables Internet navigation for various domain names. The Company helps to enable the security, stability, and resiliency of the domain name system and the Internet by providing root zone maintainer services, operating two of the 13 global Internet root servers, and providing registration services and authoritative resolution. It operates the authoritative directory, for all .com, .net, and .name domain names (generic top-level domains or gTLDs), as well as for certain transliterations of .com and .net in number of different native languages and scripts (internationalized generic top-level domains). It also operates the authoritative directory for all .cc domain names (country code top-level domain). The Company operates the technical or back-end systems for .edu and certain other gTLDs. Its operations infrastructure includes distributed servers, networking and disaster recovery plans.

Based on the available data and market analysis, here's a projection for VRSN stock price in 2030:

VeriSign's stock price is expected to reach $312-350 by 2030, driven by its monopolistic position in domain registry services and consistent price increase capabilities. The company's ability to raise .com domain prices by 7% annually during 4 out of every 6-year period, combined with its 55% free cash flow margin and aggressive share buyback program, supports this growth trajectory.

The projection is supported by VeriSign's renewed contracts for .com and .net domains through 2030, allowing price increases starting 2027, and Citi analysts' optimistic outlook projecting significant upside potential.

The company's utility-like business model and position as one of the S&P 500's most profitable companies (ranking fifth in profit margin) provides strong fundamentals for sustained growth.

VRSN has a total of 907 employees.