GoDaddy: A Poor Investment, Overvalued And Outclassed By Its Competitors

Summary:

• GoDaddy Inc.’s valuation is unsustainable, trading at 6.5x EV/FY25 revenue and 30.5x FY25 P/E despite slowing revenue and earnings growth.
• Bookings growth is decelerating, a key forward indicator of future revenue slowdown, making GoDaddy vulnerable to valuation compression.
• The web hosting market is highly competitive, with GoDaddy losing market share to rivals like Wix, limiting its pricing power.
• GoDaddy’s AI features are unoriginal and unlikely to drive significant growth; GDDY investors should seek better opportunities elsewhere.

2024 is drawing to a close, and with the stock markets nervously retreating from all-time highs, there has never been a better time for investors to deploy careful stock-picking for 2025 as the best way to beat the major

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within 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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