Is GoDaddy Stock Underperforming the S&P 500?

Tempe, Arizona-based GoDaddy Inc. (GDDY) is a leading provider of internet domain registration, web hosting, and online business solutions. With a market cap of $16.8 billion, the company empowers millions of entrepreneurs and small businesses worldwide by offering tools and services to establish and grow their online presence.

Companies worth $10 billion or more are generally described as “large-cap stocks.” GoDaddy fits right into that category, underscoring its significant role in the internet services industry. As a trusted partner for millions of customers, GoDaddy continues to innovate and support the digital transformation of businesses globally.

Despite its notable strengths, GDDY stock has plummeted 41.9% from its all-time high of $216 touched on Jan. 30. Meanwhile, GDDY stock prices have dropped 12.8% over the past three months, lagging behind the S&P 500 Index’s ($SPX) 1.8% uptick during the same time frame.

GoDaddy’s performance has remained grim over the longer term as well. GDDY stock prices have plunged 36.4% on a YTD basis and 39.5% over the past 52 weeks, compared to SPX’s 14.3% gains in 2025 and 11.1% returns over the past year.

GDDY stock has traded consistently below its 50-day and 200-day moving averages since mid-June, underscoring its bearish trend.

GoDaddy’s stock prices soared more than 5% in a single trading session following the release of its impressive Q3 results on Oct. 30. The company has observed a notable growth in ARR and average revenue per user; this has helped its total revenues for the quarter to grow 10.3% year-over-year to $1.3 billion, beating the Street’s expectations by 2.8%. Further, it also observed a notable margin expansion, leading to a 14.4% growth in EPS to $1.51, surpassing the consensus estimates by 67 bps.

Further, the company has recorded 9% growth in total bookings, reaching $1.4 billion, boosting investor confidence.

However, GoDaddy has significantly underperformed its peer, VeriSign, Inc.’s (VRSN) 17.5% gains on a YTD basis and 24.5% returns over the past 52 weeks.

Among the 17 analysts covering the GDDY stock, the consensus rating is a “Moderate Buy.” As of writing, its mean price target of 178.14 suggests a 41.8% upside potential from current price levels.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com