GoDaddy (GDDY) Stock Forecast & Price Target

GoDaddy's applications and commerce (A&C) segment accounted for 38.1% of revenue and experienced a year-over-year growth of 13.7%, with bookings growing even faster at 14%. The company anticipates continued robust growth in this segment, projecting mid-teens revenue growth for fiscal year 2025, supported by strong performance in its payment solutions and high-margin subscription services. Furthermore, GoDaddy has raised its overall revenue outlook for FY25 to a range of $4.93 billion to $4.95 billion, reflecting an 8% increase at the midpoint compared to the previous year, indicating solid operational strength and a positive trajectory.

The analysis indicates a negative outlook on GoDaddy's stock driven by potential macroeconomic deterioration, which may result in decreased customer acquisition and revenue per user (ARPU) growth, consequently impeding top-line growth. The company's reliance on small businesses makes it particularly vulnerable, as a decline in perceived value of its services could lead to increased churn and cancellations of subscriptions, harming overall financial performance. Additionally, the competitive landscape poses risks, as rising customer acquisition costs driven by aggressive marketing from competitors could further compress margins and profitability.