GoDaddy Earnings: High-Margin AI Sales Continue to Boost Profitability; Fair Value Raised by 11%

We are raising our fair value estimate for no-moat GoDaddy to $150 per share from $135 after the company reported good fourth-quarter results and provided decent 2025 guidance. GoDaddy continues to enjoy a growing mix of high-margin solutions like bundling and artificial intelligence-embedded technologies while driving strict operational discipline supported by AI efficiencies. Continued strength in bookings indicates robust demand for GoDaddy’s offerings, signaling steady top-line growth for the next few years. We have adjusted our intermediate-term revenue and profitability estimates to reflect healthy pricing and our increased confidence in the firm’s strong product attach rate. While we are impressed by the firm’s performance, we see the shares as expensive and point investors to moatier names in our coverage.