GoDaddy's Strong Foundation Pleases Analyst, But Shaky Execution Raises Concern
Portfolio Pulse from Lekha Gupta
Oppenheimer analyst Ken Wong initiated coverage on GoDaddy Inc (NYSE:GDDY) with a Perform rating. Wong believes GoDaddy's dominant market position in domains and its durable core business will drive growth. However, he expressed concerns about the company's strategy of pursuing higher-value customers and its impact on execution. He estimated revenue and adjusted EPS of $4.2 billion and $3.83 in FY23 and $4.5 billion and $5.20 in FY24.
October 17, 2023 | 6:53 pm
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GoDaddy's strong market position and durable core business are expected to drive growth, but concerns over its strategy of pursuing higher-value customers could impact execution.
The analyst's Perform rating indicates a neutral outlook for GoDaddy's stock. While the company's strong market position and expected growth are positive factors, concerns over its strategy could potentially impact its performance negatively.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100