Jim Cramer’s Exclusive List: 10 Stocks You Should Keep an Eye On

3. Godaddy Inc. (NYSE:GDDY)

Number of Hedge Fund Investors: 48

Cramer expressed his approval of Godaddy Inc. (NYSE:GDDY) pulling back from its 52-week high. He pointed out that he likes the fact that Godaddy Inc. (NYSE:GDDY) is profitable, which makes it an attractive investment after a recent dip.

“I like the fact that the stock has pulled back a little from its 52-week high. I like that the business is profitable.”

GoDaddy Inc. (NYSE:GDDY) is an appealing investment due to its strong financial performance, strategic plans, and positive growth prospects. In Q2 2024, Godaddy Inc. (NYSE:GDDY) reported revenues of $1.12 billion, marking a 7% increase from the previous year. Godaddy Inc. (NYSE:GDDY) also raised its full-year revenue guidance to between $4.525 billion and $4.565 billion, reflecting steady growth. This increase is supported by an 11% rise in bookings to $1.26 billion and improvements in its core applications and commerce segment. Looking ahead, Godaddy Inc. (NYSE:GDDY) is focusing on integrating AI through its GoDaddy Airo initiative, which aims to improve customer engagement and optimize product offerings.

Godaddy Inc. (NYSE:GDDY)’s solid profitability is highlighted by an expected EBITDA margin of around 29% for 2024 and a projected 20% rise in free cash flow to at least $1.3 billion. This financial strength allows for share repurchases and strategic investments. With Godaddy Inc. (NYSE:GDDY)’s stock up about 42% year-to-date, its strong fundamentals and growth potential make it a promising investment opportunity.

Diamond Hill Mid Cap Strategy stated the following regarding GoDaddy Inc. (NYSE:GDDY) in its Q2 2024 investor letter:

“On an individual holdings’ basis, top contributors to return in Q2 included Mid-America Apartment Communities, UDR and GoDaddy Inc. (NYSE:GDDY). GoDaddy Inc. (NYSE:GDDY) 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.”