What Happened?

Shares of domain registrar and web services company GoDaddy (NYSE:GDDY) fell 14% in the afternoon session after the company stumbled through a weak fourth quarter (2024): Its EPS fell short, revenue barely cleared expectations, and growth remained sluggish. 

On the other hand, GoDaddy blew past analysts' bookings expectations this quarter and its EBITDA outperformed Wall Street's estimates. Looking ahead, GoDaddy projects 7% revenue growth in 2025, indicating no improved momentum, and offering little optimism. Overall, we think this was an ok quarter with some key areas of upside, but the market seemed to focus on the negatives.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy GoDaddy? Access our full analysis report here, it’s free.

What The Market Is Telling Us

GoDaddy’s shares are not very volatile and have only had 1 move greater than 5% over the last year. Moves this big are rare for GoDaddy and indicate this news significantly impacted the market’s perception of the business.

GoDaddy is down 8.4% since the beginning of the year, and at $182.26 per share, it is trading 15% below its 52-week high of $214.35 from January 2025. Investors who bought $1,000 worth of GoDaddy’s shares 5 years ago would now be looking at an investment worth $2,325.

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