Can GoDaddy's Agentic AI Initiatives Push the Stock Higher?

Core Insights - GoDaddy's shares have decreased by 36.6% over the past 12 months, significantly underperforming the Zacks Computer and Technology sector, which returned 23.6% [1] - The company is facing challenges from a tough macroeconomic environment and intense competition in the digital services market, but it is expected to benefit from AI integration initiatives [1] Company Developments - GoDaddy has launched Airo.ai, a beta agentic AI platform designed for small businesses, which includes six agents to assist in various tasks from domain registration to website building [2] - The shift towards an Agentic AI platform, with Airo.ai and Airo Plus at its core, is becoming a major growth driver for the company [3] - GoDaddy plans to have AI generate 70% of its code by the end of the year, with 45% currently being AI-generated [3] Financial Projections - GoDaddy has raised its revenue guidance for 2025, projecting total revenues between $4.93 billion and $4.95 billion, reflecting an 8% year-over-year increase at the midpoint [4] - The company anticipates mid-teens growth in Applications and Commerce (A&C) revenues and mid-single digit growth in core revenues for 2025 [4] - For Q4 2025, GoDaddy expects revenues of $1.255-$1.275 billion, representing a 6% increase at the midpoint, with a normalized EBITDA margin of approximately 32% [5][8]