victorko

GODADDY WAY OVERVALUED - RIPE FOR SHORTING - BUY PUT OPTIONS

Short
NYSE:GDDY   GODADDY INC
Godaddy is way overvalued. Using DCF valuation, I can only get a value of $17.50 for GDDY . GDDY has just announced its quarterly earnings , another loss of -0.07 per share. Its sales are growing at 13% per year but it is failing to convert it to positive earnings . I think this stock is going to tank big time. In overnight trading, it dropped to $70 but bounced up again on very low volume . There are a lot of competitors in the website publishing space, GDDY has a large share of the market but its dominance could get eroded from here further supporting a much lower value per share. I think this is a 6 month put option play. Buy at the money put options with 6 month expiry. I think this strategy could be a big winner. Also, Trump is increasing tariffs on China again, the market could tank with GDDY falling hard from here on.

The technicals look bearish too. The RSI , ROC and MACD are all looking bearish supporting a down movement.

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