paulfundmanager
Sep 26, 2:00 AM
$GDDY $GDDY GoDaddy looks increasingly unattractive to me.
Despite spending roughly
$1.6B on share buybacks since 2020, the stock has struggled to sustain meaningful upside. Management also has substantial equity-based compensation, which makes the company’s aggressive buyback strategy worth scrutinizing.
Then there’s the balance sheet: roughly
$2.8B of net debt exposure at a time when AI is putting pressure on SaaS and website-building businesses. At the same time, GoDaddy’s revenue growth has slowed dramatically, while its cost base has risen substantially.
Looking at revenue, costs, debt and inflation over the past decade, I believe a significant portion of the reported revenue growth has come from pricing increases rather than strong underlying volume growth. The customer proposition doesn’t appear to have improved proportionally.
AI could further accelerate disruption across website creation, hosting and small-business software.
For me its a shitty net short
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