News surrounding Chinese lab DeepSeek stunned the artificial intelligence world, spanking AI chip stocks like Nvidia and Broadcom. But rather than seeing a deep decline like Nvidia's, AI-fueled enterprise software maker GoDaddy has launched a new breakout, earning a spot on the IBD Breakout Stocks Index.
The new move comes after GoDaddy stock already soared as much as 194% from a post-earnings spike in November 2023. And now the provider of internet domains to millions of small businesses has kicked off even more gains ahead of a Super Bowl commercial starring actor and entrepreneur Walton Goggins, fueled by GoDaddy Airo.
But with GoDaddy earnings due Feb. 13, investors should keep risk management rules in mind.
See Who Joins GoDaddy On The IBD Breakout Stocks Index
GoDaddy Airo And Walton Goggins Goggle Glasses
Harnessing innovative AI technology, GoDaddy Airo aims to help small-business owners get online faster, drive website traffic and deepen customer engagement. One such entrepreneur is Goggins, a two-time Emmy nominee.
After an eight-year hiatus from Super Bowl advertising, GoDaddy returns to the field with a commercial starring Goggins. Set to start airing on Feb. 9 the ad will highlight how GoDaddy Airo helped turn the actor's idea into a thriving goggle glasses business.
The actor — currently shooting season two of the "Fallout" series from Amazon — launched Walton Goggins Goggle Glasses last year. The new business turned to GoDaddy Airo to design a logo, create and publish the website, help with social media, and write order and shipping confirmation emails.
GoDaddy Stock In Demand Within Strong Industry
Alongside peers like Enfusion, Samsara, Cloudflare and IPO Leader Klaviyo, GoDaddy hails from the enterprise software industry group. The group ranks a strong No. 7 out of the 197 industries IBD tracks.
IBD Stock Checkup shows clear demand for GoDaddy stock, including an A Accumulation/Distribution Rating and five quarters of rising fund ownership. Plus, the stock sports an up/down volume ratio of 2 — double the 1.0 minimum to show demand.
It has also seen its Composite Rating rise to solid 95 out of a best possible 99.
Note that in August, GoDaddy dominated the list of new buys by the best mutual funds, raking in a whopping $2 billion from these savvy investors. Currently, an impressive 110 funds with an A+ rating from IBD have a position in the stock.
How Far Can GoDaddy Go?
Building on its already massive gain, GoDaddy has just cleared a 211.11 buy point in a flat base and remains in buy range. With the ideal buy zone extending up to 221.67, the stock closed Wednesday's session at 213.80.
In a sign of market leadership, its relative strength line has soared to 52-week highs.
Despite its already meteoric rise, GoDaddy's latest base is technically a still-young second-stage pattern. That's a positive, since first- and second-stage setups tend to spark bigger gains than later-stage bases.
But risk management is one of the four pillars of The IBD Methodology. So while GoDaddy stock is showing power with an early-stage breakout, investors should not ignore its already stellar run. Whether starting a new position or adding to an existing one, keep in mind rules for how to buy and when to sell stocks. Such guidelines are particularly important as GoDaddy gets set to report earnings next month.
Meanwhile, also track how other AI leaders like Nvidia and Broadcom are faring after getting rattled by the DeepSeek news. Already well below its 50-day moving average, Nvidia managed to cling to support at its 200-day line after rebounding above it on Tuesday.
Broadcom is fighting for support at its 50-day line.
IBD Breakout Opportunities ETF
The IBD Breakout Opportunities ETF from Innovator Capital Management tracks the IBD Breakout Stocks Index. As with other index ETFs, this fund allows you to invest in the entire index in addition to, or rather than, buying individual stocks. Learn more here about the ETF and Innovator.
Follow Matthew Galgani on X (formerly Twitter) at @IBD_MGalgani.
