GoDaddy Inc. ( GDDY Quick Quote GDDY - Free Report) is consistently working toward strengthening its domain offerings on the back of strategic acquisitions.
This is evident from GDDY’s recent agreement to acquire Dan.com, a company catering to the needs of the domain industry.
With the takeover of Dan.com, GDDY will incorporate the automation of the former and lease into its capabilities to provide advanced services to its customers.
The acquisition is expected to be complete during the third quarter of this year.
Efforts to Gain Domain Market Share
Apart from the recent move, GDDY acquired DNAcademy in March to expand their features for providing a premium domain-buying experience to customers.
Further, GoDaddy offers robust privacy and protection tools for eligible domains to protect customer information and prevent spams.
These efforts are expected to continue helping GoDaddy expand its presence in the booming domain name registrar market.
The underlined market is witnessing significant growth in recent times, thanks to the increasing efforts by companies in expanding their online market presence. Global brands tend to take premium domain names to strengthen their position and gain momentum among customers.
Per a straits research
report, the global domain name registrar market is likely to witness a CAGR of 5.18% between 2021 and 2027.
The acquisition is anticipated to further aid GoDaddy in penetrating the global web hosting services market, which includes the domain register market.
The global web hosting services market is expected to reach $267.1 billion in 2028, seeing a CAGR of 18.0% from 2021 to 2028, according to a Fortune Business Insights
report. Portfolio Strength
The takeover of Dan.com is likely to bode well with GoDaddy’s growing efforts toward increasing its portfolio of solutions.
Apart from the latest step, in March, GDDY launched its Websites + Marketing Commerce Plus plan equipped with Avalara AvaTax, an automated sales tax solution for small businesses. The solution automates the e-commerce sales tax process and keeps a track of transaction thresholds without the need for manual intervention.
In June, GoDaddy strengthened its free GoDaddy Studio app with the Link in Bio feature. The capability helps businesses and entrepreneurs promote their online store sites and social platforms.
In February, GDDY released QR codes for on-the-go transactions to help small business owners with faster and seamless e-commerce and in-person payments.
These growing initiatives are likely to continue helping GoDaddy attract more customers, thereby contributing to its top-line growth.
This, in turn, is expected to help GDDY win the confidence of investors in the near and long term.
Shares of GDDY have been down 17.1% in the year-to-date period, outperforming the Zacks
Computer and Technology sector’s decline of 29.9%. Zacks Rank & Stocks to Consider
Currently, GoDaddy carries a Zacks Rank #3 (Hold). Investors interested in the broader Zacks Computer & Technology sector can consider some better-ranked stocks like
Aspen Technology ( AZPN Quick Quote AZPN - Free Report) , Agilent Technologies ( AVT Quick Quote AVT - Free Report) and Analog Devices ( ADI Quick Quote ADI - Free Report) . While Analog Devices sports a Zacks Rank #1 (Strong Buy), Aspen Technology and Agilent carry a Zacks Rank #2 (Buy) at present. You can see . the complete list of today’s Zacks #1 Rank stocks here
Analog Devices has lost 16.2% in the year-to-date period. The long-term earnings growth rate for ADI is currently projected at 5.7%.
Aspen technology has returned 27.5% in the year-to-date period. The long-term earnings growth rate for AZPN is currently projected at 18.4%.
Agilent has lost 26.1% in the year-to-date period. The long-term earnings growth rate for A is currently projected at 14.9%.