GoDaddy Inc Class A
GDDY: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$392.00 | Xkgl | Pmlznhmsz |
GoDaddy Earnings: Aftermarket Damps First Quarter, but We Expect Turnaround Before Year-End
We maintain our $87 fair value estimate for no-moat GoDaddy following a mixed first-quarter 2023 result. Topline growth fell short of our expectations as lumpy aftermarket revenue, foreign exchange headwinds, and a disposal of assets in the hosting business dragged on the result. Nonetheless, we are optimistic about a recovery over the course of the year as headwinds abate, and we maintain our full-year and long-term forecasts. At current prices, GoDaddy shares trade at an attractive 20% discount to our unchanged valuation.