Key Stats for GoDaddy Stock
- 2025 Price Change for GoDaddy stock: -40%
- $GDDY Share Price as of Jan. 3: $119
- 52-Week High: $216
- $GDDY Stock Price Target: $178
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What Happened?
GoDaddy (GDDY) stock has experienced a brutal year in 2025, dropping roughly 40% from its January highs despite the company posting solid financial results throughout the year. The steep decline highlights how investor expectations can sometimes matter more than actual business performance.
The trouble started in February when GoDaddy reported fourth-quarter 2024 results. Revenue grew 8% to $1.2 billion, which actually beat the company’s own guidance of 7% growth. But there was a catch.
Earnings per share came in at $6.45 for the full year, just slightly below what analysts expected. That small miss was enough to send GDDY stock crashing 13% in a single day.
The problem wasn’t the business itself. The real issue was that GDDY stock had run up 62% in the prior year, with its valuation climbing even faster. When a stock gets ahead of itself like that, even a minor disappointment can trigger a sharp selloff.
Things didn’t improve much as the year progressed. In the third quarter, GoDaddy actually beat expectations again. Revenue jumped 10% year-over-year to $1.3 billion, and earnings per share of $1.51 topped forecasts.
The company also raised its full-year revenue guidance to 8% growth. But GDDY stock still fell, which indicates how cautious investors had become.
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What the Market Is Telling Us About GoDaddy Stock
The market’s reaction to GoDaddy reveals a disconnect between solid business fundamentals and investor sentiment. Notably, institutional investors have also been trimming their positions.
Douglas Lane & Associates sold 22,113 shares worth an estimated $3.4 million in the third quarter, reducing their stake to less than 1.3% of the fund’s holdings.
So, what’s driving the pessimism? Conservative forward guidance seems to be a significant factor. Even though GoDaddy is growing revenue at a healthy 7-8% clip and generating impressive free cash flow of $1.5 billion, investors were hoping for more substantial growth acceleration. The company’s projection of 6-8% annual revenue growth over the next few years hasn’t excited Wall Street.
However, there are signs management believes the selloff is overdone. GoDaddy has authorized a $900 million share repurchase program, which signals confidence in the company’s long-term fundamentals.
At current prices, GDDY stock trades at about nine times expected free cash flow, which isn’t expensive for a profitable company with steady growth.
The company is also making big investments in AI capabilities. GoDaddy launched Airo.ai and enhanced WordPress features during the year, betting that artificial intelligence can help small businesses build websites faster and easier. If these AI initiatives gain traction, they could drive better-than-expected growth in 2026 and beyond.
For now, GDDY stock appears to be in a wait-and-see period. The business continues to perform well, but investors want proof that management’s AI strategy can reaccelerate growth before they’re willing to bid shares higher again.
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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!
