Today's Pick: 👴🏽 GDDY

We examine an overlooked an undervalued technology company that is quickly adopting AI.

💲 Business Model

GoDaddy Inc. is a cloud-based technology company that provides domain name registration, shared website hosting. The company serves small businesses, individuals, organizations, developers, designers, and domain investors. GoDaddy's core products and services include domain name registration, shared website hosting, virtual private servers, managed hosting, security products, presence products, business application products, online store capabilities, GoDaddy Payments, and point-of-sale (POS) devices.

🚀 Growth Potential

  • Adopting Commerce product to deepen customer relationships

  • Launching Apple's contactless Tap to Pay technology

  • Improving pay buttons and new reports for merchants

  • Generative AI to auto populate content and create natural language

  • Managed WooCommerce store offering

  • Broadening bundling offers for new and existing customers

  • Improving onboarding flow for customers

  • Payable domains

⚖️ Intrinsic Value

GoDaddy (GDDY) is currently trading at $78.06.

Best Case:

  • 🟢 Intrinsic Value: $176.02 Undervalued by 56%

  • 🟢 DCF Value: $176.07 Undervalued by 56%

  • 🟢 Relative Value: $175.98 Undervalued by 56%

Worst Case:

  • 🟢 Intrinsic Value: $90.2 Undervalued by 13%

  • 🔴 DCF Value: $47.4 Overvalued by 39%

  • 🟢 Relative Value: $132.99 Undervalued by 41%

👉 DCF (Discounted Cash Flow) estimates the value of an investment based on projections of how much money that investment will generate in the future.

👉 Relative valuation involves the use of similar, comparable assets in valuing another asset.

☎️ Earnings Call Q1 2023 (May 4, 2023):

  • GoDaddy's customers are more optimistic about the future of their business than they were six months ago.

  • GoDaddy's Applications and Commerce segment drove double-digit growth of 12% in Q1, supported by 10% ARR growth in Create and Grow products.

  • GoDaddy surpassed $1 billion in annualized GPV for GoDaddy payments.

Charts 📊

📰 Recent News

Sentiment: 🟡 Neutral

GoDaddy (GDDY) integrates generative AI techniques into Website Builder to deliver an enhanced experience to small entrepreneurs.

Sentiment: 🟡 Neutral

GoDaddy, Inc announced three new products and services that leverage generative artificial intelligence (AI) to help them accomplish vital but time-consuming tasks to grow their business.

Sentiment: 🟡 Neutral

With its new generative AI-powered tool, GoDaddy just busted the myth that small business owners need to spend hours writing content for their website.

Sentiment: 🟡 Neutral

GoDaddy Inc.today announced Go Daddy Operating Company, LLC and GD Finance Co, LLC allocated a $1,761 million tranche of term loans maturing in 2029, the proceeds of which will be used to refinance all outstanding Amendment No. 6 Term Loans

The investor's chief problem—and even his worst enemy—is likely to be himself.

Benjamin Graham, The Intelligent Investor