With a market cap of $12.1 billion, GoDaddy Inc. (GDDY) is the world’s largest domain name registrar, helping millions of entrepreneurs globally start, grow, and scale their businesses. With GoDaddy Airo®, its AI-powered experience, the company makes it faster and easier for small businesses to get online, attract customers, and boost sales.
Shares of the Tempe, Arizona-based company have lagged behind the broader market over the past 52 weeks. GDDY stock has dipped 39.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 22.4%. Moreover, shares of the company have decreased 26.6% on a YTD basis, compared to SPX's 13.3% rise.
Looking closer, shares of the domain registrar have also underperformed the State Street Technology Select Sector SPDR ETF's (XLK) return of 42.8% over the past 52 weeks and a 30.6% increase on a YTD basis.
Despite reporting better-than-expected Q2 2026 revenue of $1.3 billion on Jul. 30, GoDaddy shares tumbled 16.7% the next day after the company narrowed its fiscal 2026 revenue outlook to $5.22 billion - $5.26 billion, citing slower AI-tool adoption and weaker customer acquisition. The cautious outlook raised concerns that heavy investment in its Airo.ai platform is not yet driving growth fast enough, while intensified competition from Wix in AI-powered website building adds further pressure. Although Q3 revenue guidance of $1.32 billion - $1.34 billion was in line with estimates, investors focused on the weaker growth trajectory and the narrower full-year outlook.
For the fiscal year ending in December 2026, analysts expect GoDaddy's EPS to grow 20.8% year-over-year to $7.21. The company's earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 19 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buys,” two “Moderate Buy” ratings, and 10 “Holds.”
This configuration is slightly less bullish than three months ago, with eight “Strong Buy” ratings on the stock.
On Aug. 3, Wedbush cut GoDaddy’s price target to $93 while maintaining an “Outperform” rating.
The mean price target of $106.35 represents a 16.8% premium to GDDY’s current price levels. The Street-high price target of $170 suggests an 86.7% potential upside.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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