Is GoDaddy A Buy In 2021?

GoDaddy Inc. (GDDY - Get Rating) is one of the largest services platforms for entrepreneurs worldwide. It has gained 39.8% over the past year on increased demand for its services. These services include providing domain names and shared website hosting products that enable consumers to build websites and e-commerce enabled online stores. Through its services, GDDY empowers more than 20 million entrepreneurs every day.

The company’s impressive performance is reflected in its solid financial results in the last-reported quarter (ended December 31, 2020). The stock closed Friday’s trading session at $72.41.

Furthermore,  its acquisition of Poynt, a mobile local search and advertising company, is expected to be quite profitable. As more companies turn to GDDY to create and expand their online presence, we think the company should thrive.

GDDY – The shares of GoDaddy (GDDY) have gained significantly over the past year as the demand for its cloud-based technology products and services increased amid the COVID-19 pandemic. With its acquisition of Poynt, the company is expected to thrive this year and beyond because the merger gives it an edge over its competitors. Read on for a closer look.

Here are the factors that I think could influence GDDY’s performance in the upcoming months:

Acquisition of Poynt

In December, GDDY entered an  agreement to acquire Poynt, which it  completed in  February. The acquisition is expected to be very profitable  and should help expand the company’s  offerings and give it an  edge over its competitors, such as Shopify Inc. (SHOP). GDDY’s CEO Aman Bhutani said that, “Poynt delivers amazing experiences in payments, invoicing and point-of-sale that strengthen our commerce offerings and will bring significant value to our customers.”

Increase in Revenue Across All Segments

GDDY’s total revenue increased nearly 12% year-over-year to $873.90 million for the fiscal 2020 fourth quarter ended December 31, 2020. Its revenue from its  domain segment increased 14.2% year-over-year to $402.20 million for the quarter, while revenue from  the hosting and presence segment increased 5.5% year-over-year to $308.80 million. Its revenue from the business applications segment increased 20.4% year-over-year.

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