GoDaddy (NYSE:GDDY) Lowered to "Outperform" Rating by Raymond James Financial

Key Points

• Raymond James downgraded GoDaddy from “strong buy” to “outperform” while maintaining a $100 price target, implying only about 0.46% upside from the reported share price. Analysts overall rate the stock “Moderate Buy,” with a consensus target of $118.21.
• GoDaddy’s latest quarter exceeded expectations, with EPS of $1.83 versus $1.69 expected and revenue of $1.30 billion versus $1.29 billion expected. Revenue rose 6.6% year over year, while the company’s Airo AI product reached $50 million in annualized recurring revenue.
• Investors remain cautious about the outlook: full-year and third-quarter revenue guidance was broadly in line with expectations rather than raised, while AI-related disruption and margin durability remain concerns.

GoDaddy (NYSE:GDDY - Get Free Report) was downgraded by equities researchers at Raymond James Financial from a "strong-buy" rating to an "outperform" rating in a research report issued to clients and investors on Friday, MarketBeat.com reports. They presently have a $100.00 price objective on the technology company's stock. Raymond James Financial's price target indicates a potential upside of 0.46% from the company's current price.

A number of other brokerages also recently issued reports on GDDY. Piper Sandler restated a "neutral" rating on shares of GoDaddy in a research report on Friday. Wedbush reissued an "outperform" rating on shares of GoDaddy in a research note on Tuesday. Weiss Ratings restated a "hold (c-)" rating on shares of GoDaddy in a report on Tuesday, June 16th. Benchmark cut their price target on shares of GoDaddy from $195.00 to $185.00 and set a "buy" rating on the stock in a research report on Tuesday, April 28th. Finally, JPMorgan Chase & Co. cut their price target on shares of GoDaddy from $154.00 to $124.00 and set an "overweight" rating on the stock in a research report on Thursday, June 18th. Nine analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $118.21.

GoDaddy Price Performance

Shares of GDDY opened at $99.54 on Friday. GoDaddy has a 1 year low of $71.59 and a 1 year high of $165.11. The company has a debt-to-equity ratio of 15.86, a current ratio of 0.67 and a quick ratio of 0.67. The company has a market capitalization of $13.18 billion, a price-to-earnings ratio of 15.75, a price-to-earnings-growth ratio of 0.95 and a beta of 0.89. The business has a 50-day moving average of $86.79 and a 200-day moving average of $88.83.

GoDaddy (NYSE:GDDY - Get Free Report) last announced its earnings results on Thursday, July 30th. The technology company reported $1.83 EPS for the quarter, beating the consensus estimate of $1.69 by $0.14. The business had revenue of $1.30 billion for the quarter, compared to analysts' expectations of $1.29 billion. GoDaddy had a return on equity of 366.90% and a net margin of 17.32%.The firm's revenue was up 6.6% on a year-over-year basis. During the same period in the prior year, the business posted $1.41 earnings per share. As a group, equities research analysts anticipate that GoDaddy will post 7.15 earnings per share for the current year.

Insider Activity at GoDaddy

In related news, CFO Mark Mccaffrey sold 3,958 shares of the stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $89.86, for a total transaction of $355,665.88. Following the transaction, the chief financial officer directly owned 109,228 shares of the company's stock, valued at $9,815,228.08. This represents a 3.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Amanpal Singh Bhutani sold 8,373 shares of the firm's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $89.86, for a total transaction of $752,397.78. Following the completion of the sale, the chief executive officer owned 521,747 shares of the company's stock, valued at $46,884,185.42. The trade was a 1.58% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 16,751 shares of company stock worth $1,480,228 over the last quarter. 0.93% of the stock is currently owned by insiders.

Institutional Trading of GoDaddy

Several large investors have recently made changes to their positions in GDDY. Coldstream Capital Management Inc. grew its stake in shares of GoDaddy by 4.8% during the 3rd quarter. Coldstream Capital Management Inc. now owns 1,887 shares of the technology company's stock worth $258,000 after purchasing an additional 86 shares during the period. Main Street Financial Solutions LLC lifted its stake in shares of GoDaddy by 1.0% in the 2nd quarter. Main Street Financial Solutions LLC now owns 12,136 shares of the technology company's stock valued at $2,185,000 after purchasing an additional 119 shares during the period. Lido Advisors LLC boosted its holdings in GoDaddy by 6.2% during the fourth quarter. Lido Advisors LLC now owns 2,083 shares of the technology company's stock worth $283,000 after buying an additional 121 shares in the last quarter. Martin Capital Advisors LLP grew its position in GoDaddy by 1.5% during the fourth quarter. Martin Capital Advisors LLP now owns 9,082 shares of the technology company's stock valued at $1,127,000 after buying an additional 130 shares during the period. Finally, Vontobel Holding Ltd. increased its holdings in GoDaddy by 2.0% in the fourth quarter. Vontobel Holding Ltd. now owns 6,859 shares of the technology company's stock valued at $851,000 after buying an additional 134 shares in the last quarter. 90.28% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting GoDaddy

Here are the key news stories impacting GoDaddy this week:

• Positive Sentiment: Second-quarter results beat estimates. GoDaddy reported adjusted EPS of $1.83, above the roughly $1.69–$1.72 analyst consensus, while revenue reached approximately $1.30 billion versus expectations near $1.29 billion. Revenue increased about 7% year over year. GoDaddy Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: AI and cash-flow trends were encouraging. Annualized recurring revenue rose 6% to $4.4 billion, international revenue grew 8%, and the company said its Airo artificial-intelligence product reached $50 million in annualized recurring revenue. GoDaddy reaffirmed its approximately $1.8 billion free-cash-flow target for 2026. GoDaddy Q2 2026 Earnings Call Highlights
• Neutral Sentiment: Full-year revenue guidance was maintained or updated to $5.2 billion–$5.3 billion, broadly in line with analyst expectations. Third-quarter revenue guidance of $1.315 billion–$1.335 billion also brackets consensus, limiting the benefit of the earnings beat. GoDaddy Forecasts Q3 Revenue
• Negative Sentiment: Investors viewed the forward outlook as underwhelming. With sales guidance largely in line rather than raised after the quarterly beat, the results did not provide the stronger growth acceleration the market appears to have expected. GoDaddy Goes Down After Q2 Results and Outlook
• Negative Sentiment: AI-related disruption and margin concerns remain overhangs. Investors are weighing whether generative AI could pressure GoDaddy’s traditional domain and web-services businesses, while also questioning the durability of margin expansion. Separate law-firm announcements regarding potential securities investigations add an additional sentiment risk, although they do not establish wrongdoing. GoDaddy Fell on AI Disruption and Margin Concerns

About GoDaddy

GoDaddy is a technology company that provides a suite of online services aimed primarily at small businesses, entrepreneurs and individuals looking to establish and grow an online presence. The company's core activities include domain name registration and aftermarket services, a range of website hosting options, and tools for building, managing and promoting websites. Its product mix is designed to simplify the technical aspects of running a website so customers can focus on their businesses.

Product and service offerings span website builders and managed WordPress hosting, shared and dedicated hosting, e-commerce capabilities, email and productivity solutions, SSL certificates and site security tools, and online marketing and search engine optimization services.

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