Is GoDaddy (GDDY) Undervalued After Its Node.js Hosting Launch?

Why GoDaddy’s Node.js Hosting launch matters for investors

GoDaddy (GDDY) has introduced Node.js Hosting, a product that lets developers and AI coding tools deploy and manage web apps through the GoDaddy API with minimal manual setup.

The service automates HTTPS, security tooling and preview environments, which broadens GoDaddy’s hosting portfolio and gives investors a fresh product launch to factor into any assessment of the stock.

Recent trading tells a mixed story for GoDaddy. The share price has climbed 14.5% over the past 90 days and 6.4% across the last month, yet the year to date share price return is down 12% and the 1 year total shareholder return has declined 21%. Longer term 3 and 5 year total shareholder returns of 38% and 51% hint that longer horizon holders have still seen meaningful gains despite this year’s softer momentum.

Scan beyond GoDaddy and spot other developers’ platforms that could benefit from similar AI driven workflows with a curated list of 92 AI infrastructure stocks.

Bulls see GoDaddy’s Node.js Hosting launch as fresh fuel for a developer-focused platform, while bears point to a share price that has lagged year to date. Which case does the current valuation lean toward next?

Most Popular Narrative: 2% Undervalued

GoDaddy last closed at $104.35, which sits slightly below the most followed fair value estimate of $106.75. As a result, the active debate is about what needs to go right for that small gap to matter.

Rapid rollout and growing penetration of AI-powered solutions such as Airo and Ask Airo are leading to higher attach rates, near-perfect retention among higher-intent customer cohorts, greater average order size, and strong ARPU growth (up 10% to $230). All of these factors are described as supportive of rising net margins and long-term earnings leverage.

See why 29 investors see GoDaddy as 2% undervalued.

Result: Fair Value of $106.75 (UNDERVALUED)

Still, AI driven search changes that redirect traffic and the securities fraud class actions tied to domain promotions could pressure the GoDaddy narrative if the outcomes are unfavorable.

Find out about the key risks to this GoDaddy narrative.

Next Steps

If the mixed signals around GoDaddy leave you uncertain, that is the point, the picture includes pressure and promise. To weigh both sides quickly and form your own take, start with the 4 key rewards and 2 important warning signs.

Looking for more investment ideas beyond GoDaddy?

You do not need to stop your research at GoDaddy. Broader opportunity sets often reveal better fits for your risk profile and time horizon.

• Target potential mispricing by scanning a curated pool of quality candidates through the 29 high quality undervalued stocks.
• Prioritise resilience by filtering for companies with stronger financial foundations using the list of solid balance sheet and fundamentals (25 results).
• Hunt for under-the-radar potential by reviewing a focused 20 high quality undiscovered gems.

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.

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