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Investing.com - Oppenheimer maintained its Perform rating on GoDaddy Inc (NYSE:GDDY) following the company’s annual Investor Dinner, according to a research note released Wednesday. The web hosting company, currently trading at $128.31, has seen its shares decline nearly 30% over the past six months despite maintaining a market capitalization of $17.34 billion. InvestingPro analysis indicates the stock is trading below its Fair Value, suggesting potential upside opportunity.
The research firm expressed an "incrementally positive" view on management’s strategy to improve customer attachment and monetization through its Airo AI offerings. During the event, GoDaddy demonstrated its AI app builder, agentic workflows for small business customers, and Airo for WordPress professional.
GoDaddy management indicated that agentic functionality will require payment, with monetization planned through subscription tiers. The company emphasized that managing AI costs remains a priority, with guardrails implemented to minimize impact on profit margins. This focus on profitability aligns with GoDaddy’s strong financial performance, as the company maintains a healthy 9% free cash flow yield and revenue growth of 8.68% over the last twelve months.
Oppenheimer noted interest in GoDaddy’s potential Agent Name Service (ANS), which aims to certify agents to facilitate interactions similarly to how DNS works for websites. This represents a potential new service area for the company.
The research firm also highlighted GoDaddy’s continued productivity improvements within its customer care organization, where AI is being utilized to handle routine support tickets while human representatives focus on revenue-generating and customer retention interactions. InvestingPro data reveals management has been aggressively buying back shares, reflecting confidence in the company’s long-term prospects. For deeper insights into GoDaddy’s financial health and over 10 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, GoDaddy has been actively expanding its Airo.ai platform with the introduction of six new AI agents aimed at enhancing small business operations. These new tools include features like a centralized Conversations Inbox, Marketing Calendar, Social Posts Agents, and an Online Appointments Agent, all designed to streamline online presence management. The company has also opened public access to its Agent Name Service (ANS) API, enabling developers to integrate with GoDaddy’s identity naming system for AI agents. Additionally, GoDaddy launched Airo.ai, a Beta artificial intelligence platform, to assist small businesses in automating tasks through conversational interactions. This platform is capable of executing a variety of tasks, such as domain registration, website building, and logo generation. RBC Capital reaffirmed its Outperform rating for GoDaddy, highlighting the company’s advancements in AI capabilities, with a price target set at $200.00. These developments reflect GoDaddy’s ongoing commitment to enhancing its offerings for small businesses through innovative AI solutions.
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