Key Stats for GDDY Stock
- Price Change for GDDY stock: -14.3%
- GDDY Share Price as of Feb. 25: $79
- 52-Week High: $193
- GDDY Stock Price Target: $170
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What Happened?
GoDaddy (GDDY) stock dropped 14.3% after the company released its fiscal 2025 results and issued a weaker-than-expected revenue outlook for 2026. Management forecasted annual revenue growth below Wall Street estimates, which pressured shares despite solid profitability. According to Reuters, investors focused on slower top-line growth rather than margin strength.
The company reported fiscal 2025 operating income of $1.1 billion, up 26.2% year over year. However, GoDaddy guided for softer demand trends in its core domain and hosting businesses. This outlook raised concerns about near-term growth visibility, especially as small business spending remains uneven.
Analysts also pointed to rising competition across website-building and commerce tools. While GoDaddy continues investing in AI-driven products, monetization timelines remain uncertain. As a result, the market reacted quickly to the cautious forward guidance.
The selloff followed a period of strong stock performance, which left little room for disappointment. Shares had traded near multi-year highs before earnings. That positioning amplified the downside reaction.
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What the Market Is Telling Us About GDDY Stock
The sharp pullback suggests investors are repricing GoDaddy for slower growth rather than deteriorating fundamentals. The company still generates strong cash flow and maintains healthy margins. GoDaddy’s LTM gross margin stands at 63.6%, with an EBIT margin of 23.0%.
Efficiency metrics remain standout, with LTM ROIC at 27.9% and ROCE at 22.6%. These figures highlight disciplined capital allocation and pricing power. However, the market appears focused on growth deceleration instead of profitability.
GoDaddy’s balance sheet shows $2.7 billion in net debt, or 2.1x LTM EBITDA. While leverage is manageable, it limits financial flexibility in a slower growth environment. The company continues prioritizing share repurchases over dividends.
Investors are also weighing macro headwinds affecting small businesses. Domain registrations and website spending tend to soften during uncertain economic periods. That backdrop adds pressure to near-term expectations.
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Should You Invest in GoDaddy Inc.?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up GDDY, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track GDDY alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
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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!
