Cantor Fitzgerald’s Top Internet Stocks: Best Stocks To Buy According To $13.2 Billion Firm

11. GoDaddy Inc. (NYSE:GDDY)

Number of Hedge Fund Holders In Q2 2024: 48

Share Price Target Upside: 11%

Cantor’s Rating: Neutral

Cantor’s Share Price Target: $170

GoDaddy Inc. (NYSE:GDDY) is a pureplay internet company that focuses on developing cloud experiences and providing other services to businesses. This places it in a favorable position as it exposes the firm to a variety of high growth industries such as digital advertising, cloud development, and eCommerce. It also means that tight margins are central to GoDaddy Inc. (NYSE:GDDY)’s hypothesis. Along with margins, investors also expect the firm to produce consistent and strong bookings growth to gauge GoDaddy Inc. (NYSE:GDDY)’s market penetration. Additionally, the business focused nature of its operations and the exposure to eCommerce and domain registration introduces cyclical trends in the firm’s hypothesis as well. GoDaddy Inc. (NYSE:GDDY) benefits from stable recurring revenues due to its software business, as well as growing brand recognition as one of the top players to enable businesses and others to develop their websites. Looking at its income statement, 64% of GoDaddy Inc. (NYSE:GDDY)’s revenue is from its internet registration business, where it can continue to enjoy significant competitive advantages because of market presence and brand recognition.

Diamond Hill Capital mentioned GoDaddy Inc. (NYSE:GDDY) in its Q2 2024 investor letter. Here is what the fund said:

“GoDaddy designs and develops cloud-based web platforms primarily for small businesses. Shares rose in the quarter on the back of strong applications and commerce segment bookings, which contributed to a notable acceleration in revenue growth. Though management has been conservative in its guidance, we believe the market is increasingly recognizing the magnitude of the opportunity in front of the company, giving a boost to shares.”