Swisscom profit drops 23% as Vodafone Italia costs weigh on results
Investing.com - Cantor Fitzgerald has reiterated its Neutral rating and $150.00 price target on GoDaddy Inc (NYSE:GDDY) following the company’s third-quarter earnings report. This price target aligns closely with InvestingPro’s Fair Value assessment, suggesting the stock is currently slightly undervalued at its current trading price of $132.36.
GoDaddy exceeded Wall Street expectations with revenues and normalized EBITDA coming in 3% and 4% above consensus estimates, respectively. The company’s Core platforms revenue grew 8% year-over-year, with 4% growth excluding the 28% increase in aftermarket business, while Applications & Commerce revenue showed a slight deceleration to 14% year-over-year growth.
Looking forward, GoDaddy provided fourth-quarter revenue guidance of 5-7% growth, approximately in line with previous Street forecasts of 7% year-over-year growth. The company reaffirmed its free cash flow target of $1.6 billion for fiscal year 2025. InvestingPro data shows GoDaddy already generates substantial cash with a levered free cash flow of $1.45 billion and an attractive free cash flow yield of 8% over the last twelve months. This strong cash generation capability is one of several key insights available in the comprehensive Pro Research Report, which transforms complex financial data into actionable intelligence for investors.
During the earnings call, GoDaddy outlined several emerging products and strategic initiatives, including ANS and Aero.AI, aimed at strengthening its position for what it calls the "agentic era" as artificial intelligence becomes more integrated into web and commerce platforms.
GoDaddy shares have underperformed the Nasdaq by 58 points year-to-date amid concerns about potential AI disruption to its business model, with Cantor Fitzgerald noting that at 8 times fiscal year 2027 estimated free cash flow, the company’s valuation is currently near the low end of its medium-term range. InvestingPro data confirms this challenging performance, showing a 32.7% price decline over the past six months and that the stock is trading near its 52-week low of $125. Despite these concerns, the company maintains a "GOOD" overall financial health score and has been profitable over the last twelve months with diluted EPS of $5.60.
In other recent news, GoDaddy Inc. reported its third-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.51, exceeding the forecasted $1.48. Revenue also outperformed projections, reaching $1.27 billion compared to the expected $1.23 billion. These results highlight a strong financial performance for GoDaddy during this period. Despite the positive earnings and revenue figures, GoDaddy’s stock experienced a slight decline in after-hours trading. The stock dipped by 0.45%, closing at $126, which could be attributed to investor caution or profit-taking. These developments are part of the recent updates concerning GoDaddy’s financial status.
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