GoDaddy: GDDY shares emerge on the stock market thanks to AI

The GoDaddy (GDDY) shares have been listed on the New York Stock Exchange for almost ten years.

Until last year, however, they had remained somewhat under the radar. In the last twelve months, on the other hand, they have recorded stellar performances. 

The company GoDaddy and the listing of GDDY shares on the Stock Exchange

GoDaddy is a famous American company that provides hosting services and domain registration for websites. 

It was founded back in 1997 by Bob Parsons in Phoenix, and still today it has a physical headquarters in Arizona in Tempe, despite being registered in the state of Delaware.

It invoices more than 4 billion dollars and has more than 6,000 employees. 

In 2005 it had already become the largest registrar in the world accredited by ICANN, and in 2013 it had reached a size four times larger than that of its closest competitor. 

In 2014, it filed an IPO of 100 million dollars with the SEC, and in 2015 this IPO landed on the New York Stock Exchange.

The trend of GDDY (GoDaddy) shares

In the first three years of being listed on the stock exchange, the price of GDDY shares went from the initial $26 to a peak of $84.

However, since then, for more than six consecutive years, the trend of their price has done nothing but move sideways between $60 and $87, with rare exceptions. 

The boom started on Friday, November 3, 2023. 

That day, in a single stock market session, the price went from $79 to $85, starting a rally that only ended in August 2024 above $167. 

So in about eight months it recorded an extraordinary +123% but went largely unnoticed due to the stellar performance of Nvidia stocks.

After that August peak, which remains the all-time high to date, in September the price of GDDY shares fell below $150, which is still almost double the level from which the rally started last October. 

In the second half of September, however, it had already returned to $160, and after a brief drop to $152 at the beginning of October, it has now returned to about $164.

The forecasts for the future price of GDDY

According to a recent analysis, it might be on the verge of another bull breakout.

In the last 12 months, GDDY has recorded performances superior to all the stocks included among the so-called “Magnificent Seven,” except for the aforementioned Nvidia (NVDA). 

But GDDY, like NVDA, is also driven by the ever-growing interest in AI (artificial intelligence), and thus it would be ready to register a new breakout towards other all-time highs.

The forecast stems from the observation that in August GoDaddy topped the list of new purchases by the best mutual funds, unlike the stocks of the Magnificent Seven. It is estimated that these expert investors have scooped up GDDY shares worth just over 2 billion dollars. 

Note that GoDaddy has a market capitalization of about 23 billion, so 2 billion is really a lot. 

Currently, there are 120 funds with an A+ rating holding GDDY in their portfolio, and the stock has recorded four consecutive quarters of increased ownership by the funds.

But the most sensational data in this sense is another. 

In fact, the up/down volume ratio of GoDaddy is very strong (2.0), and such a ratio with a value greater than 1.0 indicates demand. This metric tracks institutional buying and selling over the last 13 weeks, and for the stocks of the Magnificent Seven, the values are lower: Meta 1.5, Nvidia 1.5, and Amazon 1.4. 

The key point should be the economic results of the third quarter. If they turn out to be particularly good, when the quarterly report is published, a new bull rally could begin.