NYSEInformation TechnologySoftware - InfrastructureSnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — NEBITDA margin over 33% in 2026: EBITDA margin 27.4% vs 33% target.
GoDaddy grows revenue about 6% yearly, aiming for $5.24 billion in 2026. Profit margins are improving, targeting over 33% NEBITDA margin. Free cash flow is strong, expected near $1.8 billion. The company is cheap with a PE of 13 and solid cash flow yield.
Revenue growth could slow below 6% due to billings weakness. Profit margins may not reach 33% if costs rise. Management selling stock and guidance cuts raise concerns about confidence.
The market prices GoDaddy about 56% below our fair value near $206, expecting roughly 7% revenue growth. Our view aligns with consensus growth but sees risk in margin and execution.
Breaks if: free cash flow falls below $1.6 billion in FY26
Breaks if: guidance is cut again or materially lowered
Breaks if: NEBITDA margin falls below 31% in FY26
Breaks if: revenue falls below $5.0 billion in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on technology and AI transformation. The current thesis state is intact, supported by strong recent financial performance, but it carries medium confidence due to execution quality concerns.
The valuation suggests that GDDY is considered cheap compared to its peers, with a notable expectations gap. The market appears to be pricing in some fragility due to weak execution quality, but not fully reflecting the potential for improvement.
Fundamentals are likely to remain stable in the near term, as management has consistently reaffirmed revenue and free cash flow guidance. However, there is a risk of missing expectations, particularly given the recent performance of industry peers.
The thesis hinges on the performance of sector bellwethers like MSFT, ORCL, and PLTR, which could influence GDDY's momentum. Additionally, management's ability to execute on AI transformation and maintain guidance will be crucial.
Over the next 1 to 3 years, GDDY's performance will depend on both sector trends and internal execution. Not investment advice.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the read. However, analysts reassessed AI execution, which poses a threat. The company launched a new developer platform, reinforcing growth potential.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
