GoDaddy | GDDY | Long at $128.90GoDaddy NYSE:GDDY is the world's largest domain registrar, managing over 84 million domains for over 21 million customers. AI, particularly through GoDaddy's Airo platform and related GenAI tools, is poised to drive outsized growth by supercharging product innovation, customer value, and operational efficiency.
Technical Analysis
The stock has dropped 35% so far in 2025, but this was after a meteoric 208.5% rise from October 2023 to December 2024. The price has now regressed to my selected historical mean - a typical share-accumulation region for algorithmic trading when it comes to high-growth stocks. While this is often a solid area of support, it may dip down to $115 to shakeout retail traders. Obviously, further declines would occur if fundamentals change, but the forward growth is highly attractive, and I doubt it will "crash" from here if the outlook remains positive.
Earnings and Revenue Growth into 2028
Projected earnings-per share growth between 2025 ($5.98) and 2028 ($11.12): 86.0% (AI effect...)
Projected revenue growth between 2025 ($4.92 billion) and 2028 ($6.19 billion): 25.8%
Current P/E: 22x (remaining tech sector: 45.7x)
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Insiders
Warning: Lots of insider selling and no recent buying.
openinsider.com
Health
Debt-to-equity: 9x (very high, but due to aggressive share repurchases rather than distress)
Cash flow remains a bull case cornerstone, with accelerating free cash flow conversion (>100% of EBITDA) underscoring operational leverage from AI efficiencies and premium customer shifts.
Action
GoDaddy NYSE:GDDY is a prominent name and leader in domain registration. As AI enhancements lead to improvements in operational margins, earnings are likely to grow tremendously into 2028. Once agentic AI search enters the scene, it will be very interesting to better understand the importance of such a domain registration company for its successful implementation. While the price may dip beyond the historical mean to shakeout some retail traders, I think the future of this currently undervalued, high-growth company into 2028 is very bullish. Thus, at $128.90, NYSE:GDDY is in a buy-zone with potential near-term risk between $100 and $115.
Targets into 2028
$160.00 (+24.1%)
$200.00 (+55.2%)
