Event context and recent share performance

GoDaddy (GDDY) has been drawing attention after a period of weaker share performance, with the stock showing declines over the past month, past 3 months, year to date, and the past year.

Against that backdrop, investors are weighing GoDaddy’s US$4,869.8m in revenue, US$828.5m in net income, and a value score of 5, alongside indications that some models suggest the shares trade at a discount.

At a share price of US$103.85, GoDaddy’s recent 30 day and year to date share price declines, alongside a 1 year total shareholder return decline of 51.55%, suggest momentum has been fading even though 3 year and 5 year total shareholder returns remain positive.

If GoDaddy’s recent weakness has you reassessing your watchlist, it could be a good moment to broaden your search with high growth tech and AI stocks.

With GoDaddy posting US$4,869.8m in revenue, US$828.5m in net income, a value score of 5 and some models pointing to a large discount to assessed worth, is this weakness a buying opportunity, or is the market already pricing in future growth?

Most Popular Narrative: 40.7% Undervalued

With GoDaddy’s fair value estimate of $175.06 sitting well above the last close at $103.85, the most widely followed narrative argues that long term earnings power is being underappreciated and that recurring, higher margin lines are central to the story.

Large-scale adoption of subscription-based SaaS and bundling initiatives, enabled by accelerated AI-driven product development, is shifting revenue mix toward recurring and higher-margin streams, improving revenue predictability and EBITDA margin expansion (targeting 33% by 2026).

Curious how recurring revenue, margin assumptions, earnings growth and the chosen discount rate all combine to reach that gap to today’s price? The full narrative lays out specific growth estimates, long term profitability targets and the earnings multiple needed to justify that fair value. If you want to see exactly which numbers have to line up for this valuation to hold, the detailed breakdown is worth a look.

Result: Fair Value of $175.06 (UNDERVALUED)

However, this hinges on AI products and A&C momentum holding up; tougher competition and any stumble in execution could quickly challenge that undervalued thesis.

Build Your Own GoDaddy Narrative

If you look at these assumptions and conclusions and feel they do not quite fit your view, you can review the same data, stress test different scenarios, and sketch your own version of GoDaddy’s story in just a few minutes with Do it your way.

A great starting point for your GoDaddy research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

Looking for more investment ideas?

If GoDaddy does not quite fit what you are after, do not stop here. Use targeted screeners to surface fresh ideas and pressure test your thesis.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.