Aug. 26 at 7:23 PM
Wells Fargo analysts downgraded GoDaddy
to underweight, cutting its price target to
$76, implying a 24% downside from Tuesday’s close.
According to Wells Fargo’s analyst Alec Brondolo, AI Overviews now appear in roughly 48% of searches, up from 10% in December. “GoDaddy’s domain pricing remains ahead of peers, causing AI Overviews and LLMs to recommend competitors,” Brondolo notes.
The analyst believes the pricing needs to align with industry as discovery shifts to AI.
“We believe the top of funnel in consumer internet is quickly shifting to AI Overviews & LLMs,” Brondolo wrote, pointing to growing market-share risk for GoDaddy.
$GDDY