Recent coverage of GoDaddy (GDDY) has centered on its sharp share price pullback, soft bookings outlook, and profitability concerns, even as management approved a large buyback and highlighted new AI and WordPress products.

The latest pullback leaves GoDaddy’s share price at $115.60, with a 7 day share price return of a 6.83% decline and a 30 day share price return of an 8.36% decline. The 1 year total shareholder return of a 41.36% loss contrasts with a 3 year total shareholder return of a 52.99% gain, suggesting longer term holders still sit on gains even as recent momentum has faded.

If GoDaddy’s recent swings have you rethinking where growth might come from next, it could be worth scanning high growth tech and AI stocks for other software and AI driven opportunities.

With the shares down sharply over the past year, a value score of 5, and management leaning into a US$900 million buyback alongside new AI and WordPress offerings, the key question is whether GoDaddy is now undervalued or whether the market is already pricing in its future growth.

Most Popular Narrative: 34% Undervalued

Against GoDaddy’s last close of US$115.60, the most followed narrative points to a higher fair value, built on detailed earnings and margin assumptions.

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 what kind of revenue growth and margin lift need to line up for that valuation to hold? The narrative spells out explicit targets for sales, profits and the future earnings multiple that would need to come together. The interesting part is how those pieces interact rather than any single headline number. If you want to see how that translates into a higher fair value than today’s price, the full narrative lays it out step by step.

Result: Fair Value of $175.06 (UNDERVALUED)

However, this depends on GoDaddy holding its ground against intense competition and avoiding higher customer churn, which could pressure margins and challenge the case for a higher fair value.

Build Your Own GoDaddy Narrative

If you see the numbers differently or prefer to test your own assumptions, you can build and tweak a custom narrative in minutes by starting 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 is only one piece of your watchlist, now is the time to broaden your scope and hunt for other opportunities before the crowd catches on.

• Spot potential mispricings by scanning these 879 undervalued stocks based on cash flows that might offer more attractive entry points than widely followed names.
• Ride powerful tech trends by reviewing these 28 AI penny stocks that are building products around artificial intelligence and automation.
• Target income focused opportunities by checking out these 11 dividend stocks with yields > 3% that could add more consistent cash returns to your portfolio mix.

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.