GoDaddy Stock Climbs Following AI Agent Security Integration with Salesforce MuleSoft

Key Stats for GDDY Stock

• 3 Month Price change for GDDY stock: -27%
• $GDDY Share Price as of Feb. 20: $91
• 52-Week High: $194
• $GDDY Stock Price Target: $175

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What Happened?

GoDaddy (GDDY) stock jumped 3.48% on February 20 after the company announced a significant partnership that puts its AI agent security technology at the center of enterprise workflows. Despite the recent rally, GDDY stock is down almost 30% year-to-date.

The web services giant revealed that its Agent Name Service (ANS) is integrating with Salesforce’s MuleSoft Agent Fabric, giving large companies a way to register, verify, and control AI agents that access critical systems and data.

This move represents GoDaddy’s aggressive push into AI infrastructure beyond its traditional domain registration and web hosting business.

The company is positioning itself as a foundational player in what CEO Aman Bhutani calls the “Agentic Open Internet,” where AI-powered agents collaborate across systems and need verifiable identities to operate securely.

• During the company’s recent third-quarter earnings call, management unveiled several AI initiatives driving the business forward.
• GoDaddy launched five new Airo agents that handle core customer tasks, such as finding domain names, building websites, creating logos, and generating compliance documents.
• The company also introduced Airo.ai, a new website built on the GoDaddy platform specifically designed to test and deploy AI agents rapidly.
• Third-quarter financial results exceeded expectations. Total revenue grew 10% year-over-year to $1.3 billion, surpassing the high end of guidance.
• The high-margin Applications & Commerce (A&C) segment delivered particularly strong 14% revenue growth to $481 million, driven by solid adoption of subscription solutions.
• More importantly, GoDaddy’s customer cohort dynamics are strengthening significantly. The company’s premium customer segment, those spending over $500 annually, now represents almost 10% of the customer base.
• This cohort shows near-perfect retention rates and attaches to multiple products at much higher rates than historical averages, driving average revenue per user (ARPU) up 10% to $237.
• Management is also seeing dramatic productivity gains from AI internally. More than 45% of code written at GoDaddy is now AI-generated, with that figure reaching 90% for new applications.
• This is allowing small teams to build and launch products in weeks rather than months, fundamentally changing the company’s development velocity.

Based on the strong performance, GoDaddy raised its full-year 2025 revenue guidance to 8% growth, hitting the top end of its three-year target range of 6% to 8%.

The company also reaffirmed its normalized EBITDA margin target of 32% and free cash flow guidance of approximately $1.6 billion, representing over 18% growth.

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What the Market Is Telling Us About GDDY Stock

The recent bounce in GoDaddy stock suggests investors are warming to the company’s AI transformation story, particularly the Agent Name Service partnership with Salesforce.

However, the broader context shows significant skepticism remains. Shares are down nearly 48% over the past year despite the company’s strong financial execution and AI innovations.

The disconnect likely stems from concerns about how disruptive AI could be to GoDaddy’s core business. If AI tools make it dramatically easier to build websites without traditional hosting services, or if AI-powered search reduces the importance of domain names, GoDaddy’s traditional moats could erode.

The market appears to be weighing these existential questions against the company’s aggressive pivot into AI infrastructure.

There are several reasons for optimism about GoDaddy’s positioning.

• The Agent Name Service represents a genuine innovation that could become critical infrastructure for the AI economy.
• By building on DNS (Domain Name System) infrastructure and proposing it as an open standard, GoDaddy is leveraging its massive scale as the world’s largest domain registrar to create a new business line.
• The company is also demonstrating impressive operational leverage. Despite increasing AI investments, GoDaddy is maintaining 32% normalized EBITDA margins while growing revenue and significantly improving customer cohort quality.
• Free cash flow generation remains strong at over $1.6 billion annually, supporting an aggressive share buyback program that has reduced shares outstanding meaningfully.

Some analysts see substantial upside in GoDaddy stock at current levels. The most popular valuation narrative suggests a fair value of around $175 per share, implying the stock is roughly 48% undervalued.

That thesis depends on GoDaddy successfully monetizing its AI innovations, maintaining pricing power, and converting its high-value customer cohorts into sustained growth.

However, the wide gap between that $175 fair value and the current $90.64 price reflects real uncertainty.

GoDaddy needs to prove that AI enhances rather than disrupts its core business, that the Agent Name Service gains enterprise adoption, and that premium customer cohorts continue to grow and renew at elevated rates.

Investors should watch several key metrics in the coming quarters. Track whether A&C bookings growth sustains its current 14% pace, whether the premium $500-plus customer segment continues expanding as a percentage of the base, and whether Airo.ai gains meaningful traction outside the existing customer base.

Also monitor whether GoDaddy can maintain EBITDA margins of 32%+ while scaling AI investments.

The MuleSoft integration serves as an important validation of the Agent Name Service concept.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!