Strong Market Position Led GoDaddy’s (GDDY) Double Digit Earnings Growth

Janus Henderson Investors, an investment management company, released its “Janus Henderson Enterprise Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund returned -2.84% in the second quarter, compared to the Russell Midcap Growth Index’s -3.21% return.  The firm is committed to a disciplined, risk-aware investment approach that considers fundamentals and relative valuations. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Janus Henderson Enterprise Fund highlighted stocks like GoDaddy Inc. (NYSE:GDDY) in the second quarter 2024 investor letter. GoDaddy Inc. (NYSE:GDDY) designs and develops cloud-based products. The one-month return of GoDaddy Inc. (NYSE:GDDY) was -6.82%, and its shares gained 110.55% of their value over the last 52 weeks. On September 27, 2024, GoDaddy Inc. (NYSE:GDDY) stock closed at $156.00 per share with a market capitalization of $21.992 billion.

Janus Henderson Enterprise Fund stated the following regarding GoDaddy Inc. (NYSE:GDDY) in its Q2 2024 investor letter:

“Information technology company GoDaddy Inc. (NYSE:GDDY) was a top contributor to relative performance. GoDaddy has capitalized on its strong market position as a registrar of website domain names to sell other value-added services, such as website design and digital payments support. This strategy has provided additional revenue streams and higher margins, leading to double-digit earnings growth. GoDaddy recently migrated to a new technology platform that enables the seamless bundling of applications, while also incorporating AI to improve the customer experience.”

A close-up of a complex web page being developed and refined by a web development specialist.

GoDaddy Inc. (NYSE:GDDY) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held GoDaddy Inc. (NYSE:GDDY) at the end of the second quarter which was 48 in the previous quarter. In the second quarter, GoDaddy Inc.’s (NYSE:GDDY) total revenue increased to $1.1 billion, representing a 7% growth on both reported and constant currency basis, surpassing the upper limit of the guided range for the quarter. While we acknowledge the potential of GoDaddy Inc. (NYSE:GDDY) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed GoDaddy Inc. (NYSE:GDDY) and shared the list of internet stocks to buy according to Cantor Fitzgerald. It was one of the top individual contributors of Diamond Hill Mid Cap Strategy in Q2 2024. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.