GoDaddy Inc's Meteoric Rise: Unpacking the 11% Surge in Just 3 Months

GoDaddy Inc (GDDY, Financial), a leading software company, has been making waves in the stock market with its impressive performance. The company's market cap stands at $12.34 billion, with its stock price currently at $84.08. Over the past week, the stock has seen a gain of 16.94%, and over the past three months, it has risen by 10.67%. According to the GF Value, which currently stands at $93.27, the stock is modestly undervalued. This is consistent with the GF Value from three months ago, which was $95.1, indicating that the stock has maintained its value.

Unpacking GoDaddy Inc's Business Model

GoDaddy Inc is a provider of domain registration and aftermarket services, website hosting, security, design, and business productivity tools, commerce solutions, and domain registry services. The company primarily targets micro- to small businesses, website design professionals, registrar peers, and domain investors. Since acquiring payment processing platform Poynt in 2021, the company has expanded into omnicommerce solutions, including offering an online payment gateway and offline point-of-sale devices. 1720460336202575872.png

Profitability Analysis

GoDaddy Inc's profitability rank is 6/10, indicating a relatively high level of profitability. The company's operating margin is 12.77%, which is better than 78.36% of the companies in the industry. Its ROE is 10000.00%, outperforming 99.96% of the companies, and its ROA is 4.64%, better than 66.96% of the companies. The company's ROIC is 7.03%, which is better than 63.53% of the companies. Over the past 10 years, the company has been profitable for 5 years, which is better than 44.87% of the companies. 1720460357501251584.png

Growth Prospects

The company's growth rank is 5/10, indicating moderate growth. Its 3-year and 5-year revenue growth rates per share are 15.50% and 15.10% respectively, both of which are higher than the industry average. The company's future revenue growth rate is expected to be 7.54% over the next 3 to 5 years, which is better than 31.82% of the companies. Its 3-year EPS without NRI growth rate is 41.20%, and its future EPS growth rate is expected to be 19.62% over the next 3 to 5 years. 1720460377872986112.png

Top Holders of GoDaddy Inc's Stock

The top three holders of the company's stock are Paul Tudor Jones (Trades, Portfolio), who holds 183,766 shares, Caxton Associates (Trades, Portfolio), who holds 21,890 shares, and Lee Ainslie (Trades, Portfolio), who holds 20,833 shares. These holders own 0.13%, 0.01%, and 0.01% of the company's stock respectively.

Competitive Landscape

GoDaddy Inc faces competition from several companies in the software industry. Its main competitors include Gen Digital Inc (GEN, Financial) with a market cap of $11.13 billion, Okta Inc (OKTA, Financial) with a market cap of $11.29 billion, and Amdocs Ltd (DOX, Financial) with a market cap of $9.7 billion. These market caps are all close to GoDaddy's market cap of $12.34 billion.

Conclusion

In conclusion, GoDaddy Inc's stock has performed well recently, with gains of 16.94% over the past week and 10.67% over the past three months. The company's profitability and growth are relatively high, and it has a strong presence in the software industry. Its main competitors have similar market caps, indicating a competitive market. Based on the data and analysis presented in this article, GoDaddy Inc's prospects for the future look promising.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.