Long Trade Idea
Enter your long position between $102.14 (the lower band of its horizontal support zone) and $109.50 (the upper band of its horizontal support zone).
Market Index Analysis
- GoDaddy (GDDY) is a member of the S&P 500 Index.
- This index closed at a fresh all-time high, but decreasing bullish trading volumes do not confirm the uptrend.
- The Bull Bear Power Indicator of the S&P 500 is bullish with a negative divergence.
Market Sentiment Analysis
Equity futures are rising this morning after the S&P 500 closed at a fresh record high, brushing aside tariffs and geopolitical tension, while focusing solely on earnings season. The tech sector, led by AI and AI-related companies, continues to drive equity markets higher, and ASML shone in its latest earnings report. The US Federal Reserve is expected to keep interest rates on hold, but markets await guidance for 2026. On the earnings front, Microsoft, Meta Platforms, and Tesla (TSLA) will report after the market close.
GoDaddy Fundamental Analysis
GoDaddy is the world’s fifth-largest web hosting company with over 20M+ customers. It focuses on micro and small companies.
So, why am I bullish on GDDY near its 52-week low?
I turned bullish amid attractive valuations, while the ongoing expansion of its Airo.ai product line shows growth rates better than I expected in my previous outlook. The integration of Poynt for omnichannel payment solutions, an expanding international presence with 14%+ growth, rising average revenue per user, and a customer retention rate above 85% form bullish tailwinds. I am cautiously optimistic about its next earnings release, driven by its Applications & Commerce (A&C), where I expect strong margins.
Metric | Value | Verdict |
P/E Ratio | 17.94 | Bullish |
P/B Ratio | 152.88 | Bearish |
PEG Ratio | 0.77 | Bullish |
Current Ratio | 0.57 | Bearish |
ROIC-WACC Ratio | Positive | Bullish |
The price-to-earnings (P/E) ratio of 17.94 makes GDDY an inexpensive stock. By comparison, the P/E ratio for the S&P 500 is 31.52.
The average analyst price target for GDDY is $175.00. This suggests excellent upside potential with decreasing downside risks.
GoDaddy Technical Analysis
Today’s GDDY Signal
- The GDDY D1 chart shows price action inside a horizontal support zone.
- It also shows price action between its descending 0.0% and 38.2% Fibonacci Retracement Fan levels.
- The Bull Bear Power Indicator is bearish with a positive divergence.
- The average bullish trading volumes are higher than the average bearish trading volumes since reaching its horizontal support zone.
- GDDY corrected as the S&P 500 rallied, a bearish trading signal, but bullish catalysts are amassing.
My GDDY Long Stock Trade
- GDDY Entry Level: Between $102.14 and $109.50
- GDDY Take Profit: Between $121.94 and $127.61
- GDDY Stop Loss: Between $94.12 and $97.03
- Risk/Reward Ratio: 2.47
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