What Happened?
Shares of domain registrar and web services company GoDaddy (NYSE:GDDY) fell 1.6% in the afternoon session after it continued a recent downward trend amid a period of significant underperformance.
The move comes as the stock has registered a disappointing 18.4% loss over the last six months, a stark contrast to the S&P 500's 9.7% gain in the same timeframe. This prolonged weakness has contributed to negative sentiment among some market observers. From a technical perspective, the stock is currently trading in what some analysts consider a support zone—a price range from which it has rebounded in the past. However, the lack of a fresh catalyst appears to be allowing the recent negative trend to continue.
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What Is The Market Telling Us
GoDaddy’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 22 days ago when the stock gained 3.8% on the news that cooler-than-expected inflation data ignited investor optimism for a potential Federal Reserve interest rate cut. The July Consumer Price Index (CPI) report, an important measure of inflation, came in cooler than expected, showing prices holding steady at an annual rate of 2.7%. This data has led to speculation that the Federal Reserve might lower interest rates. For growth-focused sectors like SaaS, lower interest rates are particularly beneficial as they increase the present value of companies' future earnings, making their stocks more appealing.
GoDaddy is down 28.2% since the beginning of the year, and at $142.90 per share, it is trading 33.3% below its 52-week high of $214.35 from January 2025. Investors who bought $1,000 worth of GoDaddy’s shares 5 years ago would now be looking at an investment worth $1,746.
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