$163.36
arrow_drop_down2.04%Is GDDY a Buy or Sell based on AI Analysis?
Fundamental Analysis
Based on the fundamental analysis of GoDaddy, some of the most relevant indicators include its strong revenue growth of 3.58%, indicating a healthy top-line performance. The company has a solid net margin of 32.44%, reflecting its ability to efficiently convert revenue into profit. Additionally, the return on equity (ROE) stands at an impressive 68.01%, highlighting the company's ability to generate strong returns for its shareholders. The price-to-earnings (P/E) ratio of 13.87 indicates that the stock is reasonably valued compared to its earnings, making it an attractive investment opportunity. Moreover, GoDaddy's market capitalization of $17.84B showcases the company's significant presence and scale in the market. Furthermore, GoDaddy's operating margin of 18.59% signifies its operational efficiency in managing costs and generating profits. The company's market growth score of 78 reflects positive market sentiment and growth potential for the stock. Additionally, GoDaddy's strong free cash flow margin of 22.89% indicates its ability to generate cash after accounting for operating expenses and capital expenditures, providing financial flexibility for future investments. The company's impressive earnings growth year-over-year of 289.57% showcases its ability to increase profitability over time. Lastly, the high analyst recommendation of "buy" from 13 out of 17 analysts suggests confidence in the company's future performance and growth prospects.
Positive Development
GDDY has been showing strong performance in the market with an increase in its stock price from 120.94 to 122.23 from 2024-03-26 to 2024-04-02. The company has been gaining significant traction in the market, with a 75% adoption rate of AI by entrepreneurs, as per the research from GoDaddy and UCLA. GoDaddy's research has shown that online microbusinesses are creating jobs and lowering unemployment rates across the U.S.
Negative Development
The company's stock price has seen a decrease from 125.90 to 121.42 from 2024-04-09 to 2024-04-15. GoDaddy Inc. is set to announce its first-quarter 2024 financial results on Thursday, May 2, 2024, which may impact the stock price in the short term.
Technical Analysis
GoDaddy (GDDY) has a Technical Rating of SELL, indicating a bearish trend in the stock. The company's technical indicators suggest a mixed outlook, with one buy indicator (ATR), three hold indicators (MACD, ADX, and ROC), and four sell indicators (RSI, CCI, WILLR, and STOCHRSI). The stock's current price movements are also reflected in its historical trendlines, with the longest trendline showing an upward slope from $67.44 on May 5, 2023, to a forecasted price of $75.23 on April 22, 2024. Additionally, the stock's closest support and longest support prices are both at $69.84, with a decrease of 44.5% from the fifty-two-week high of $127.15. In terms of analyst forecasts, GoDaddy is predicted to experience a price decrease of 17.53% to $103.78, with a high forecast of $130 (3.31% increase) and a low forecast of $80 (-36.43% change) by a total of 27 analysts. The AI forecast price for the company is $130.48, representing a 3.69% change, with a target date of April 30, 2024. The technical analysis of GoDaddy also considers various market benchmark scores, with the company scoring well in terms of average operating profit margin growth, historical dividend yield average, and free cash flow to assets compared to industry standards. Overall, these technical indicators provide valuable insights into the stock's performance and potential future trends.
Conclusion and recommendation
Based on the data provided, it is clear that GoDaddy (GDDY) is a stock with a strong track record of growth and profitability. The company has shown consistent revenue growth of 3.58%, a high net margin of 32.44%, and a return on equity of 68.01%. With a diverse range of products and services in the technology sector, GoDaddy has shown resilience and adaptability in the face of market challenges. Additionally, the company's historical performance shows a positive trend in earnings growth year over year and a solid market ownership score of 38. In conclusion, based on the data and analysis, it is recommended to consider investing in GoDaddy as a long-term investment opportunity. The company's strong fundamentals, consistent growth, and positive market outlook make it a promising choice for investors looking for a reliable and profitable stock. With a track record of success in the technology sector and a solid market position, GoDaddy appears to be well-positioned for continued growth and success in the future.