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Can GoDaddy's Agentic AI Initiatives Push the Stock Higher?
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Key Takeaways
GoDaddy's new Airo.ai platform advances its move from traditional web tools to agentic AI.
The company now expects 2025 revenues of $4.93-$4.95B and $1.6B in free cash flow.
GoDaddy sees mid-teens A&C growth and a 32% normalized EBITDA margin for Q4 2025.
GoDaddy’s (GDDY - Free Report) shares have dropped 36.6% in the trailing 12-months, underperforming the broader Zacks Computer and Technology sector’s return of 23.6%. The company has been grappling with challenging macroeconomic environment and stiff competition in the digital services market. However, its prospects are expected to benefit from initiatives to push integrate AI into its offerings.
GoDaddy recently launched Airo.ai, a beta agentic AI website targeted for small businesses. From registering a domain to building and publishing a Website Builder site, generating a logo, drafting policy templates, and even spinning up a hosted app, Airo.ai’s six agents help businesses develop their ideas. The first six agents of Airo.ai are Airo Agent, Airo App Builder, Compliance Agent, Domain Search and Registration Agent, Website Builder Agent and Logo Agent.
GDDY’s shift from conventional web development to an Agentic AI platform, with Airo.ai and Airo Plus at its core, is turning into a significant growth driver. The company is strengthening its position with Agentic Open Internet, where AI powered agents handle end-to-end tasks for small businesses, leveraging its domain infrastructure to ensure secure, open agent ecosystems. GoDaddy plans to use AI to write 70% of its code by year-end and currently 45% of code is generated by AI.
GoDaddy Increases Revenue Forecasts for 2025
GoDaddy has raised its guidance for 2025 and now projects total revenues between $4.93 billion and $4.95 billion, representing an 8% year-over-year increase at the midpoint. It anticipates mid-teens growth in Applications and Commerce (A&C) revenues and mid-single digit growth in core revenues. GoDaddy now projects a $1.6 billion free cash flow for 2025.
GDDY anticipates low to mid-teen percent growth in A&C revenues and low single-digit growth in core revenues for the fourth quarter of 2025. The company anticipates $1.255-$1.275 billion in revenues, which represents a 6% increase at the mid-point. The normalized EBITDA margin for the fourth quarter is expected to be approximately 32%.
Long-term earnings growth rate for Advanced Energy Industries, Digital Turbine, and Ciena is currently pegged at 33.41%, 42.42% and 47.58%, respectively.
Shares of Advanced Energy Industries, Digital Turbine, and Ciena have appreciated 78%, 290.9% and 185.8%, respectively, over the past year.
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Can GoDaddy's Agentic AI Initiatives Push the Stock Higher?
Key Takeaways
GoDaddy’s (GDDY - Free Report) shares have dropped 36.6% in the trailing 12-months, underperforming the broader Zacks Computer and Technology sector’s return of 23.6%. The company has been grappling with challenging macroeconomic environment and stiff competition in the digital services market. However, its prospects are expected to benefit from initiatives to push integrate AI into its offerings.
GoDaddy recently launched Airo.ai, a beta agentic AI website targeted for small businesses. From registering a domain to building and publishing a Website Builder site, generating a logo, drafting policy templates, and even spinning up a hosted app, Airo.ai’s six agents help businesses develop their ideas. The first six agents of Airo.ai are Airo Agent, Airo App Builder, Compliance Agent, Domain Search and Registration Agent, Website Builder Agent and Logo Agent.
GDDY’s shift from conventional web development to an Agentic AI platform, with Airo.ai and Airo Plus at its core, is turning into a significant growth driver. The company is strengthening its position with Agentic Open Internet, where AI powered agents handle end-to-end tasks for small businesses, leveraging its domain infrastructure to ensure secure, open agent ecosystems. GoDaddy plans to use AI to write 70% of its code by year-end and currently 45% of code is generated by AI.
GoDaddy Increases Revenue Forecasts for 2025
GoDaddy has raised its guidance for 2025 and now projects total revenues between $4.93 billion and $4.95 billion, representing an 8% year-over-year increase at the midpoint. It anticipates mid-teens growth in Applications and Commerce (A&C) revenues and mid-single digit growth in core revenues. GoDaddy now projects a $1.6 billion free cash flow for 2025.
GoDaddy Inc. Price and Consensus
GoDaddy Inc. price-consensus-chart | GoDaddy Inc. Quote
GDDY anticipates low to mid-teen percent growth in A&C revenues and low single-digit growth in core revenues for the fourth quarter of 2025. The company anticipates $1.255-$1.275 billion in revenues, which represents a 6% increase at the mid-point. The normalized EBITDA margin for the fourth quarter is expected to be approximately 32%.
Zacks Rank & Stocks to Consider
GDDY currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Advanced Energy Industries (AEIS - Free Report) , Digital Turbine (APPS - Free Report) , and Ciena (CIEN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Advanced Energy Industries, Digital Turbine, and Ciena is currently pegged at 33.41%, 42.42% and 47.58%, respectively.
Shares of Advanced Energy Industries, Digital Turbine, and Ciena have appreciated 78%, 290.9% and 185.8%, respectively, over the past year.