In a remarkable display of market confidence, GoDaddy Inc. (NYSE:GDDY) stock has reached an all-time high, climbing to a peak of $176.17. This milestone underscores a period of significant growth for the internet domain registrar and web hosting company, which has seen its stock value more than double over the past year. Investors have rallied behind GoDaddy, propelling the stock to new heights and marking a 101.38% change in its value compared to the previous year. The company's robust performance reflects a successful strategy in expanding its services and strengthening its market position, making it a standout performer in the tech sector.
In other recent news, GoDaddy Inc. reported a robust Q3 performance, with a 7% increase in total revenue, reaching $1.15 billion. The company's Applications & Commerce segment saw a revenue growth of 16%, and GoDaddy raised its full-year revenue guidance. The company's new product, Airo, has engaged nearly 3 million customers. GoDaddy also highlighted its successful cost optimization strategies, such as the introduction of a generative AI-powered conversational bot that improved customer service efficiency.
The company further reported a 29% increase in free cash flow to $363 million, with a normalized EBITDA margin expanding to 32%. GoDaddy's full-year revenue guidance has been raised to between $4.545 billion and $4.565 billion. The company repurchased 5.2 million shares for $668 million, reducing gross shares outstanding by 23% since January 2022.
These recent developments point to a strong performance by GoDaddy, with significant growth in revenue and strategic initiatives that position the company for continued success. Despite projected tougher comparisons in Q4 and 2025 for the Annual Recurring Revenue of the Applications & Commerce segment, the company remains optimistic about its future growth.
InvestingPro Insights
GoDaddy's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at an impressive $24.65 billion, reflecting its strong position in the domain and web hosting industry. GoDaddy's revenue for the last twelve months as of Q3 2024 reached $4.48 billion, with a solid revenue growth of 6.85% over the same period.
InvestingPro Tips highlight that GoDaddy has been delivering a strong return over various timeframes, including the last month, three months, and five years. This consistent performance has culminated in the stock trading near its 52-week high, as noted in the article. Additionally, the company's profitability is underscored by its positive earnings, with analysts predicting continued profitability this year.
It's worth noting that GoDaddy's P/E ratio of 13.37 suggests a relatively attractive valuation compared to some tech peers, despite the recent stock surge. However, investors should be aware that the RSI indicates the stock may be in overbought territory, which could signal a potential short-term pullback.
For readers interested in a deeper dive into GoDaddy's financial health and market position, InvestingPro offers 17 additional tips, providing a comprehensive analysis for informed investment decisions.
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