GoDaddy: Getting Giddy After A 54% YTD Gallop

Summary:

  • GoDaddy’s transformation into an e-commerce enablement company has led to strong growth in sales and user revenue, with stock up 54%.
  • Impressive growth seen in the Application & Commerce segment, driving strong sales and bookings growth, with a 15.3% y/y increase in Q2.
  • Margin expansion outlook indicates near-term muted growth, with management expecting a slight contraction in NEBITDA margins for Q3.
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Investment Thesis

GoDaddy’s (NYSE:GDDY) transformation into a full-stack, one-stop-shop web development tool has seen the former domain registry & web hosting company see strong growth in all of its top-line metrics so far, turning around the company’s vision to a full-fledged e-commerce enablement


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GDDY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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