GoDaddy Inc. (GDDY): A Bull Case Theory

We came across a bullish thesis on GoDaddy Inc. on slo capital’s Substack by Justin. In this article, we will summarize the bulls’ thesis on GDDY. GoDaddy Inc.'s share was trading at $96.09 as of February 10th. GDDY’s trailing and forward P/E were 16.57 and 12.48 respectively according to Yahoo Finance.

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GoDaddy Inc. engages in the design and development of cloud-based products in the United States and internationally. GDDY presents a compelling investment opportunity as a durable, cash-generating business trading at a deeply discounted valuation. The company owns over 84 million domains, serving as the digital front door for millions of micro businesses, and converts recurring “digital rent” from domain renewals and related services into substantial free cash flow. Despite a roughly 50% decline in its market capitalization over the past year, GoDaddy’s free cash flow has remained robust, and guidance has been raised, highlighting the resilience of its core business.

The company further compounds value through aggressive share repurchases, having reduced its share count by more than 25% since 2022, creating a self-reinforcing growth engine even without extraordinary organic growth. GoDaddy’s platform funnels customers into higher-margin software applications and commerce services, benefiting from low churn due to the inconvenience of switching domains, hosting, and email services—a “toll bridge” dynamic that underpins durable revenue.

At current valuations, the market is mispricing the company as a commoditized registrar with structural growth risks and potential AI disruption, while underestimating the value of its recurring cash flows and repurchase program. GoDaddy is expected to generate $1.2–$1.6 billion in free cash flow, supporting both buybacks and potential debt reduction.

Base-case valuations suggest upside to $24 billion, with the potential for free cash flow per share growth of roughly 8% annually, plus meaningful rerating if multiples normalize from 9x toward 15x. Key risks include leverage constraints, AI-driven platform changes, competitive pricing pressure, and the temptation for dilutive acquisitions, but the business’s sticky revenue, disciplined capital allocation, and undervaluation offer a highly attractive risk/reward profile for investors seeking a cash-yielding, compounding franchise at a depressed price.