GDDY Stock Falls -14% In 9-day Spree On Analyst Price Target Cuts
GoDaddy (GDDY) – a cloud-based domain registration and website hosting service provider – hit 9-day losing streak, with cumulative losses over this period amounting to a -14%. The company market cap has crashed by about $2.3 Bil over the last 9 days, and currently stands at $14 Bil.
The stock has YTD (year-to-date) return of 16.6% compared to -0.7% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Slide?
[1] Analyst Price Target Reductions
- Morgan Stanley cut its price target to $145 on Jan 15
- Jefferies and Cantor Fitzgerald also lowered price targets in early January
- Impact: Heightened investor concern over AI strategy, Technical breakdown to a new 52-week low
[2] Insider Stock Sales
- Chief Strategy & Legal Officer sold shares on Jan 2 and Jan 5
- Sales occurred just as the stock’s decline began
- Impact: Increased selling pressure, Negative market sentiment
Opportunity or Trap?
Below is our take on valuation.
There are only a couple of things to fear in GDDY stock given its overall Strong operating performance and financial condition. Considering stock’s Moderate valuation, we think it is Attractive (For details, see Buy or Sell GDDY).
But here is the real interesting point.
You are reading about this -14% move after it happened. The market has already priced in the news. To avoid the next loser before the headlines, you need predictive signals, not notifications. Our High Quality Portfolio has a risk model designed to reduce exposure to losers.
Returns vs S&P 500
The following table summarizes the return for GDDY stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | GDDY | S&P 500 |
|---|---|---|
| 1D | -0.9% | -2.1% |
| 9D (Current Streak) | -13.6% | -2.1% |
| 1M (21D) | -17.6% | 1.1% |
| 3M (63D) | -19.6% | 2.0% |
| YTD 2026 | -16.6% | -0.7% |
| 2025 | -37.1% | 16.4% |
| 2024 | 85.9% | 23.3% |
| 2023 | 41.9% | 24.2% |
Take a look at what history tells you about whether past dips like this have been buying opportunities or traps: GDDY Dip Buyer Analysis.
Gains and Losses Streaks: S&P 500 Constituents
There are currently 21 S&P constituents with 3 days or more of consecutive gains and 91 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 4 | 51 |
| 4D | 4 | 14 |
| 5D | 5 | 10 |
| 6D | 6 | 9 |
| 7D or more | 2 | 7 |
| Total >=3 D | 21 | 91 |
Key Financials for GoDaddy (GDDY)
Last 2 Fiscal Years:
| Metric | FY2023 | FY2024 |
|---|---|---|
| Revenues | $4.3 Bil | $4.6 Bil |
| Operating Income | $638.2 Mil | $932.9 Mil |
| Net Income | $1.4 Bil | $936.9 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ1 | 2025 FQ2 |
|---|---|---|
| Revenues | $1.2 Bil | $1.2 Bil |
| Operating Income | $249.4 Mil | $266.6 Mil |
| Net Income | $219.5 Mil | $199.9 Mil |
The losing streak GDDY stock is currently on doesn’t inspire much confidence among investors. In contrast, Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.