Tempe, Arizona-based GoDaddy Inc. (GDDY) is an internet domain registrar and web hosting company that designs and develops cloud-based products and also sells e-business related software and services. Valued at a market cap of $26 billion, the company helps entrepreneurs and businesses establish and grow their digital presence by offering a wide range of tools, including domain management, website building, email hosting, and e-commerce solutions. 

This web hosting company has outpaced the broader market over the past 52 weeks. Shares of GoDaddy have rallied 38.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 8.6%. However, on a YTD basis, the stock is down 7.5%, lagging behind SPX’s 3.8% drop. 

Zooming in further, GDDY has outperformed the Themes Cloud Computing ETF’s (CLOD) 20.2% rise over the past 52 weeks. However, it has underperformed the ETF’s 2.3% uptick on a YTD basis. 

On May 1, GDDY released its Q1 results, and shares of the company closed down by 8.4% in the following trading session. Its revenue improved 7.7% year-over-year to $1.2 billion and came in line with the consensus estimates. Robust growth in its applications and commerce revenue, along with higher core platform revenue, supported the top-line figure. Its bookings reached $1.4 billion, up 7.9% from the year-ago quarter. Additionally, GoDaddy's NEBITDA margin expanded by 230 basis points, leading to a 16.4% increase in NEBITDA to $364.4 million. 

However, despite operational improvements, its net income declined sharply by 45.3% to $219.5 million, which might have dampened investor confidence. This drop was largely due to the absence of a one-time $258.3 million income tax benefit that had boosted the previous year’s results. 

Looking ahead to fiscal 2025, GoDaddy reaffirmed its revenue guidance of $4.86 billion to $4.94 billion, implying 7% year-over-year growth at the midpoint, and expects NEBITDA margin to expand by approximately 100 basis points.

For the current fiscal year, ending in December, analysts expect GoDaddy’s EPS to grow 17.3% year over year to $5.69. The company’s earnings surprise history is mixed. It topped the consensus estimates in two of the last four quarters, while missing on two other occasions. 

Among the 18 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on nine “Strong Buy,” one “Moderate Buy,” and eight “Hold” ratings. 

The configuration has remained consistent over the past three months. 

On May 6, JPMorgan Chase & Co. (JPM) maintained an “Overweight” rating on GDDY and raised its price target to $240, which indicates a 31.4% potential upside from the current levels. 

The mean price target of $215.06 represents a 17.8% premium from GDDY’s current price levels, while the Street-high price target of $250 suggests an upside potential of 36.9%.