[I am a relatively new investor, and I plan on sticking mainly to ETFs and some blue chips, but some insight from more experienced traders/investors would be really appreciated here.]
GoDaddy (GDDY) has more than tripled since its IPO in Apr. 2015, and since then, quite a few 'analysts' continue to rate it as a 'strong buy', for whatever it's worth. Having said that, the fundamentals of this company appear somewhat weak. First, it has an unfavorable debt-to-equity ratio. Second, it barely broke profitability after its IPO after years of unprofitability. On top of this, it missed expectations last ER, and I don't really see why analysts expect GDDY to continue trending in a positive direction.
The counter to this is GDDY's subscription-based revenue stream. I understand this, but isn't this offset somewhat by the fact that GoDaddy doesn't have anything like a moat? This is especially a problem because GoDaddy doesn't seem to have a good reputation among its actual customer base. With limited (or nonexistent) costs of switching, and a broader downturn possibly in the books soon, is this not a serious potential problem?
Having said all this, GDDY has had all of these potential issues for years, and it's tripled since its IPO. Investors and analysts have a very different impression of this stock.
Submitted February 15, 2019 at 07:50AM by need_a_stack http://bit.ly/2TPzSsj
