GoDaddy (GDDY) Fell Due to Weakening Sales

Core Insights - Diamond Hill Capital's "Mid Cap Strategy" underperformed the Russell Midcap Index in Q3 2025, returning 4.49% net compared to the Index's 5.33% [1] - The overall market saw US stocks gain over 8% in Q3 2025, with small-cap stocks leading at over 12% growth [1] Company Performance - GoDaddy Inc. (NYSE:GDDY) experienced a one-month return of -1.74% and a 52-week decline of 36.12%, closing at $126.08 per share with a market capitalization of $17.456 billion on December 30, 2025 [2] - GoDaddy's total revenue increased by 10% in Q3 2025 to $1.2 billion, exceeding guidance [4] Investment Sentiment - GoDaddy was among the bottom contributors in Q3 2025 due to slowing sales and a contracting customer base, raising concerns about the impact of AI on its business [3] - The number of hedge funds holding GoDaddy decreased from 56 to 49 in the third quarter, indicating a decline in popularity among institutional investors [4]