GoDaddy (GDDY) Stock Forecast & Price Target

GoDaddy has shown a robust growth trajectory, particularly in its Applications and Commerce (A&C) segment, which accounted for 38.1% of total revenue and experienced a year-over-year increase of 13.7%, indicating effective customer engagement and a strong sales performance. The company's strategic initiatives, such as the Agentic AI Initiative and the solid growth in its Payment solutions, underscore its commitment to enhancing customer offerings and driving revenue from its established customer base. Furthermore, GoDaddy's raised fiscal year 2025 revenue outlook to $4.93 billion to $4.95 billion reflects increased confidence in its growth potential, emphasizing the strength of its high-margin subscriptions and the anticipated mid-single-digit growth in the Core Platform segment.

The negative outlook on GoDaddy's stock is primarily driven by the potential impact of macroeconomic conditions, which could lead to reduced customer acquisition and a decline in average revenue per user (ARPU), ultimately slowing top-line growth. Additionally, a prolonged economic downturn may adversely affect small and medium-sized businesses (SMBs), resulting in increased subscription cancellations and heightened competition, further exacerbating financial challenges. Furthermore, rising customer acquisition costs due to competitors' aggressive marketing strategies could diminish GoDaddy’s marketing efficiency, negatively impacting margins and overall profitability.