GoDaddy (GDDY) Stock Forecast & Price Target

GoDaddy's Applications and Commerce (A&C) segment, which comprises 38.1% of total revenues, demonstrated robust year-over-year growth, with 13.7% revenue increase and 14% bookings growth, indicating strong demand for its offerings. The company anticipates A&C segment revenue to continue its upward trajectory with mid-teens growth projected for fiscal year 2025, supported by increasing traction in high-margin subscriptions and successful conversions within its existing customer base. Furthermore, GoDaddy raised its revenue outlook for fiscal year 2025 to a range of $4,930 million to $4,950 million, reflecting an anticipated overall growth of 8% year-over-year at the midpoint, bolstering confidence in its financial performance.

GoDaddy faces potential negative impacts from macroeconomic conditions, such as credit tightening and increased joblessness, which could lead to reduced customer acquisition and average revenue per user (ARPU) growth, ultimately hindering top-line revenue. Decreased value perception of GoDaddy's products among small businesses may cause increased customer churn and reduced gross additions, further straining financial performance. Additionally, the competitive landscape for SaaS-based website management and design services poses a risk, as aggressive marketing by competitors could elevate customer acquisition costs, thereby adversely affecting profit margins.