GoDaddy: Clicking Up Profits

Summary:

  • I believe GoDaddy is reasonably priced at 13x next year’s free cash flow, reflecting its stable business model.
  • The heavy debt burden will weigh on GoDaddy’s ability to rapidly return capital to shareholders.
  • I see potential for GoDaddy’s AI-powered tools to enhance long-term growth and profitability.
  • Despite intense competition, GoDaddy’s strong brand and diverse offerings provide a solid foundation for future growth.

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Investment Thesis

GoDaddy (NYSE:GDDY) is not a business that one would call a fast-growing business. And yet, it’s still delivering some topline growth. And while the investment thesis isn’t blemish-free, there’s still a lot to like about this


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.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.


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