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GoDaddy Rolls Out Hosting Platform for Small Businesses

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GoDaddy Inc. (GDDY - Free Report) announced yesterday the rollout of a new hosting platform developed specially for fast growing small businesses.

Known as Business Hosting, the platform’s easy-to-use control panel interface makes websites and their Domain Name System (DNS) easily manageable.  It is especially helpful for clients with limited technical skills and works smoothly with high-traffic, resource-intensive e-commerce websites.

The new platform is a result of the integration of GoDaddy’s preconfigured cPanel offering and high performance Virtual Private Server (VPS). The company claims that the platform is the first of its kind and eliminates the need of server management or server administrative skills.

We note that shares of GoDaddy outperformed the Zacks Internet Services Delivery industry over the past one year. While the industry gained 15.4%, the stock returned 20.1%. Product portfolio expansion is expected to back the momentum going ahead.

Expanding Products for Small Businesses

We believe that the roll out is a part of GoDaddy’s bid to expand its small business clientele by offering advanced but simplified solutions.

The success of the platform will give a boost to the company’s Hosting and Presence revenues, which amounted to $176.7 million (up 8.6% sequentially and 28.8% year over year) in the recently reported quarter and accounted for 36.4% of total revenue. (Read more: GoDaddy Beats Q4 Earnings and Revenue Estimates).

GoDaddy Inc. PE Ratio (TTM)

To Conclude

GoDaddy is engaged in the designing and development of cloud-based technology products for small businesses. The company has been targeting massive growth of its core business and is trying to enter related fields.

Going forward, investment in products, the technology platform, international expansion and customer care as well as delivery of innovative and increasingly personalized products and services globally should drive shareholder value.

Zacks Rank and Better Picks

Currently, GoDaddy has a Zacks Rank #3 (Hold). Better-ranked stocks in the broader technology sector include Applied Materials, Inc. (AMAT - Free Report) , Advanced Energy Industries, Inc. (AEIS - Free Report) and Alibaba Group Holding Limited (BABA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

For the current year, while estimates for Applied Materials went up 8.7%, the same for Advanced Energy and Alibaba remained unchanged in the past 30 days.

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