GoDaddy (GDDY): Rethinking Valuation After a 36% Year-to-Date Share Price Slide

GoDaddy (GDDY) has quietly slipped this year, with the stock down around 36% year to date despite solid revenue and earnings growth, and that disconnect is exactly what has investors rechecking their assumptions. See our latest analysis for GoDaddy. Despite the drop, the 1 day and 7 day share price returns have turned positive, and that small change in tone sits against a still healthy three year total shareholder return of nearly 70%. This suggests long term holders have been well rewarded even as short term momentum has faded. If GoDaddy’s reset has you rethinking your watchlist, it could be a good moment to scout other tech names using Simply Wall St’s high growth tech and AI stocks. With earnings still growing and the share price now trading at a sizable discount to analyst targets and estimated intrinsic value, is GoDaddy quietly slipping into undervalued territory, or is the market already discounting its future growth? Most Popular Narrative: 27.6% Undervalued With GoDaddy last closing at $126.67 against a narrative fair value of $175.06, the current share price implies a sizable valuation gap that hinges on how its margins and growth evolve from here. Large-scale adoption of subscription-based SaaS and bundling initiatives, enabled by accelerated AI-driven product development, is shifting revenue mix toward recurring and higher-margin streams, improving revenue predictability and EBITDA margin expansion (targeting 33% by 2026). Read the complete narrative. Want to see what powers that margin ambition and cash flow story? The narrative leans on specific growth, profitability and multiple assumptions, all tightly calibrated. Curious which levers do the heavy lifting and how sensitive that fair value is if they slip? The full breakdown reveals the exact roadmap behind that target. Result: Fair Value of $175.06 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, intensifying competition from all-in-one platforms, along with potential missteps in rolling out new AI-driven products, could pressure growth, margins, and valuation. Find out about the key risks to this GoDaddy narrative. Build Your Own GoDaddy Narrative If you see the story differently or want to stress test the assumptions yourself, you can build a custom narrative in just minutes: Do it your way. A great starting point for your GoDaddy research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision. Looking for more investment ideas? Do not stop at GoDaddy when there are potential opportunities across the market. Your next winning idea could be waiting in a corner you have not checked yet. Target reliable income streams by reviewing these 13 dividend stocks with yields > 3% that have the potential to support long term, inflation beating cash flows. Capitalize on cutting edge innovation by scanning these 24 AI penny stocks shaping the next wave of intelligent software and automation. Strengthen your value focused strategy by analyzing these 919 undervalued stocks based on cash flows that may be trading below their long term cash flow potential. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech