Tempe, Arizona-based GoDaddy Inc. (GDDY) is an internet domain registrar and web hosting company that also sells e-business-related software and services. With a market cap of $23.4 billion, GoDaddy operates through the Applications and Commerce and Core Platform segments.
The internet giant has substantially outperformed the broader market over the past year. Over the past 52 weeks, GDDY stock has returned an impressive 133%, outpacing the S&P 500 Index's ($SPX) 28.1% returns. In 2024, GDDY is up 53.5% compared to SPX’s 17.3% gains on a YTD basis.
Narrowing the focus, GDDY also outperformed the DJ Internet Index ETF FT’s (FDN) 26% returns over the past 52 weeks and 8.1% gains on a YTD basis.
Shares of GoDaddy jumped a massive 7% following the release of its Q2 earnings on Aug. 1. The company’s revenue surged 7.3% annually to $1.1 billion, exceeding Wall Street’s projections, while its net income per share grew by 87% to $1.01, also surpassed the estimates by 2.8%.
Additionally, GoDaddy showed its commitment to rewarding shareholders by buying back $520.8 million worth of its own shares between the start of fiscal 2024 and July 30.
For the current fiscal year, ending in December, analysts expect GoDaddy to report an EPS growth of 74% year over year to $4.89. The company’s earnings surprise is robust. It beat the consensus estimate in each of the last four quarters.
Among the 16 analysts covering the GDDY stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” and five “Holds.”
This configuration has been consistent over the past months.
On Aug. 5, RBC Capital analyst Brad Erickson maintained a “Buy” rating, raising the price target to $175 from $145.
GDDY’s mean price target of $167.86 represents a premium of 3% from current price levels. The Street-high target of $190 indicates a potential upside of 16.6%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
