VeriSign recently announced a 7-10% increase in the fees it charges for registering .com and .net domain names. More than 60% of VeriSign’s value is driven by its registration business and the company’s exclusive right for .com and .net domain registrations. As a result, its stock is sensitive to changes in the registration fee that VeriSign charges.
Our previous forecast for VeriSign’s domain name fee already anticipated increases; however, based on the size of the announced increase, we’ve raised our forecasts slightly and now show a Trefis price of $31.49 for VeriSign (up $1 from before) compared to a market price of $24.55.
You can see here how the stock would be impacted if VeriSign’s domain name fee increased less than the Trefis forecast.
