Cantor Fitzgerald reduced its price target on GoDaddy Inc. (NYSE: GDDY) to $90 from $130 on Wednesday, keeping a Neutral rating on the shares. At the time of the note the stock was trading near recent lows - at $92.30 and close to a 52-week trough of $86.78 - even as some analysis flags potential undervaluation at current levels.
The company’s fourth-quarter results were a mixed bag. Top-line revenue broadly matched prior street estimates, while normalized EBITDA came in about 3% above consensus as measured by Visible Alpha. Adjusted earnings per share for the period reached $1.80, ahead of the $1.58 consensus, and reported revenue was $1.3 billion, above the $1.27 billion estimate and reflecting year-over-year growth.
Despite those beats, GoDaddy’s bookings metrics showed clear signs of slowing. Fourth-quarter bookings grew 4.5% year-over-year to $1,283 million, but that pace represented a deceleration - bookings growth slowed by 4 percentage points to 5% year-over-year in the quarter - and came in more than 2% below consensus expectations. Cantor Fitzgerald cited the company’s shift to a new go-to-market approach and the use of promotions on one-year domain products as contributors to the bookings slowdown.
Management set guidance that also disappointed parts of the market. GoDaddy guided to first-quarter and fiscal 2026 revenue growth of 6% year-over-year at the midpoint, each figure about 1 percentage point below prior street estimates. The company’s Q1 bookings guidance implies further deceleration versus the fourth quarter, although management said growth should improve in the second half of the fiscal year as the effects of the promotional activity normalize.
On the product front, GoDaddy discussed progress across a range of artificial intelligence initiatives, naming projects such as Airo.ai and ANS, and noted ongoing efforts to improve efficiency in engineering and customer care. Cantor Fitzgerald described the fourth quarter as a mixed print and observed that while the company’s AI product roadmap appears healthy, prevailing market sentiment around AI-related risks is unlikely to shift materially in the near term - a dynamic that the firm said could place downward pressure on valuation multiples.
Other analyst desks have also updated their views. Barclays, while maintaining an Overweight rating, reduced its price target on GoDaddy to $118 from $200 and highlighted that the company’s fiscal 2026 revenue range of $5.19 billion to $5.28 billion implies growth slowing to below 7%, a point that could complicate expectations among more optimistic investors.
Market reaction has reflected investor concern over the outlook. Shares have fallen roughly 37% over the past six months and technical indicators referenced by some services put the stock into oversold territory based on RSI metrics.
Taken together, the quarter’s upside on EPS and revenue was offset by softer bookings, below-consensus guidance, and lingering uncertainty about how investors will value GoDaddy’s AI opportunities in the near term. Analysts point to a normalization of promotional effects later in the fiscal year as a potential offset, but near-term momentum appears muted.