GoDaddy (NYSE:GDDY) Shares Gap Up on Strong Earnings

Key Points

• GoDaddy reported Q1 GAAP EPS of $1.60 versus a $1.53 consensus and revenue of $1.27B (vs. ~$1.26B), with revenue up ~6.1% YoY, and the stock gapped up premarket (closed $86.79, opened $93.99) after the print.
• Management guided quarterly revenue above Street estimates and explicitly cited its AI toolset as a growth driver to win more small‑business customers, a point analysts said helped lift the stock.
• Risks remain: growth is modest, balance‑sheet and liquidity metrics are stretched (current ratio ~0.61, debt/equity ~17.5), the stock sits below its 200‑day moving average, and insiders have recently sold shares, which could cap upside.

GoDaddy Inc. (NYSE:GDDY - Get Free Report)'s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $86.79, but opened at $93.99. GoDaddy shares last traded at $84.3210, with a volume of 503,205 shares.

The technology company reported $1.60 earnings per share for the quarter, beating the consensus estimate of $1.53 by $0.07. The firm had revenue of $1.27 billion for the quarter, compared to the consensus estimate of $1.26 billion. GoDaddy had a return on equity of 369.00% and a net margin of 17.67%.The company's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.51 EPS.

GoDaddy News Roundup

Here are the key news stories impacting GoDaddy this week:

• Positive Sentiment: Q1 results beat expectations — GAAP EPS of $1.60 vs. $1.53 consensus and revenue of $1.27B (vs. ~$1.26B est.), with revenue up ~6.1% year-over-year, giving investors confidence in near-term profitability. MarketBeat Earnings Report
• Positive Sentiment: Management guided quarterly revenue above Street estimates and explicitly cited its AI toolset as a growth driver to attract more small-business customers — a strategic positioning that supports revenue growth expectations. Reuters: GoDaddy forecasts revenue above estimates
• Positive Sentiment: Market commentary highlights momentum from GoDaddy’s AI platform and platform adoption, which analysts and retail media say helped lift the stock after the print. Blockonomi: Stock Surges on Q1 and AI
• Neutral Sentiment: Some coverage frames revenue as essentially in line with expectations (small beat vs. consensus), underscoring that the quarter was broadly as expected rather than a major upside surprise. Yahoo Finance: Q1 Results
• Neutral Sentiment: Investor materials (press release, slide deck, conference call) were published alongside results — useful for due diligence but not a market-moving surprise on their own. PR Newswire: Q1 Financial Results
• Negative Sentiment: Underlying fundamentals leave some risks: growth is modest (~6% YoY revenue), leverage and liquidity metrics are notable (debt/equity ~17.5, current ratio ~0.61), and the stock remains well below its 200‑day moving average and one‑year high — factors that could cap upside if execution slows. MarketBeat Stock Profile

Analysts Set New Price Targets

Several equities analysts have commented on the company. Benchmark cut their price objective on GoDaddy from $195.00 to $185.00 and set a "buy" rating on the stock in a research report on Tuesday. Cantor Fitzgerald cut their price objective on GoDaddy from $130.00 to $90.00 and set a "neutral" rating on the stock in a research report on Wednesday, February 25th. Evercore set a $95.00 price objective on GoDaddy in a research report on Wednesday, February 25th. Wells Fargo & Company reaffirmed a "positive" rating and issued a $83.00 price objective on shares of GoDaddy in a research report on Friday. Finally, UBS Group cut their price objective on GoDaddy from $145.00 to $105.00 and set a "neutral" rating on the stock in a research report on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $124.21.

Insider Transactions at GoDaddy

In other GoDaddy news, CAO Phontip Palitwanon sold 1,310 shares of the company's stock in a transaction on Tuesday, March 10th. The stock was sold at an average price of $90.15, for a total value of $118,096.50. Following the completion of the sale, the chief accounting officer directly owned 20,349 shares in the company, valued at approximately $1,834,462.35. This represents a 6.05% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Amanpal Singh Bhutani sold 34,148 shares of the company's stock in a transaction on Wednesday, March 4th. The stock was sold at an average price of $88.99, for a total value of $3,038,830.52. Following the completion of the sale, the chief executive officer owned 530,120 shares of the company's stock, valued at $47,175,378.80. This represents a 6.05% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 61,918 shares of company stock valued at $5,500,469 over the last 90 days. 0.70% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On GoDaddy

A number of hedge funds have recently made changes to their positions in the stock. American Century Companies Inc. raised its stake in GoDaddy by 130.5% in the third quarter. American Century Companies Inc. now owns 151,432 shares of the technology company's stock valued at $20,720,000 after buying an additional 85,733 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new stake in GoDaddy in the third quarter valued at about $30,575,000. GDS Wealth Management raised its stake in GoDaddy by 14.4% in the third quarter. GDS Wealth Management now owns 68,577 shares of the technology company's stock valued at $9,383,000 after buying an additional 8,637 shares during the last quarter. TD Asset Management Inc raised its stake in GoDaddy by 17.9% in the third quarter. TD Asset Management Inc now owns 260,682 shares of the technology company's stock valued at $35,669,000 after buying an additional 39,626 shares during the last quarter. Finally, Strive Asset Management LLC purchased a new stake in GoDaddy in the third quarter valued at about $20,493,000. 90.28% of the stock is currently owned by hedge funds and other institutional investors.

GoDaddy Stock Performance

The business has a 50 day simple moving average of $84.84 and a 200 day simple moving average of $107.03. The company has a quick ratio of 0.61, a current ratio of 0.61 and a debt-to-equity ratio of 17.50. The company has a market capitalization of $11.33 billion, a PE ratio of 13.53, a PEG ratio of 0.79 and a beta of 0.98.

GoDaddy Company Profile

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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