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Should GoDaddy’s AI Push and US$900 Million Buyback Require Action From GoDaddy (GDDY) Investors?

Simply Wall St · 6d ago
  • In 2025, GoDaddy stepped up its AI push with products like Airo.ai and enhanced WordPress tools, while also approving a US$900 million share repurchase program following solid but slightly below-expectation earnings and cautious guidance.
  • This combination of heavy AI investment and large buybacks highlights management’s confidence in the business model even as some investors question the earnings outlook.
  • Next, we’ll examine how GoDaddy’s sizable new share repurchase plan reshapes the company’s investment narrative built around AI-driven expansion.

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GoDaddy Investment Narrative Recap

To own GoDaddy, you need to believe that its AI tools and commerce platform can keep small businesses choosing its ecosystem despite intense competition and customer churn risk. The recent earnings disappointment and share price drop have sharpened the focus on execution in AI as the key short term catalyst, while the main near term risk remains that these new AI products fail to lift engagement and spending meaningfully. So far, the latest news does not materially change that balance.

The most relevant recent move is GoDaddy’s US$3,000 million share repurchase authorization through 2027, on top of the fresh US$900 million program. That level of buyback activity can significantly reshape per share metrics and supports a narrative that pairs AI led product expansion with aggressive capital returns, even as the stock’s roughly 40% fall in 2025 keeps attention firmly on whether Airo.ai and related tools can translate into durable customer value.

Yet while buybacks may look appealing, the risk that AI agents and bundled services fail to curb churn is something investors should be aware of...

Read the full narrative on GoDaddy (it's free!)

GoDaddy's narrative projects $5.9 billion revenue and $1.3 billion earnings by 2028. This requires 7.7% yearly revenue growth and an earnings increase of about $0.5 billion from $808.5 million today.

Uncover how GoDaddy's forecasts yield a $175.06 fair value, a 46% upside to its current price.

Exploring Other Perspectives

GDDY 1-Year Stock Price Chart
GDDY 1-Year Stock Price Chart

Two fair value estimates from the Simply Wall St Community span about US$175 to US$244 per share, underlining how far apart individual views can be. When you set those against the execution risk in GoDaddy’s AI initiatives discussed earlier, it becomes even more important to compare multiple perspectives before forming an opinion on the company’s longer term performance.

Explore 2 other fair value estimates on GoDaddy - why the stock might be worth over 2x more than the current price!

Build Your Own GoDaddy Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.