GoDaddy: A Rather Sensible Proposition

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One observes with a degree of weariness the current infatuation with data centres. Naturally, anything remotely connected to this ‘AI revolution’ – a phrase that rather strains credulity, don’t you think? – is being priced as though it holds the key to eternal youth. Applied Digital, I gather, is the flavour of the month. Perfectly frightful, really. All that fuss and bother, and for what? A company that manages to burn through cash with admirable zeal. Thirty times revenue, they say? One shudders to think what sort of accounting wizardry is required to justify that.

And the S&P 500, at a comparatively modest 3.4? Well, that’s almost…responsible. Still, the whole thing feels terribly precarious. One can’t help but suspect that when the bubble inevitably bursts, there will be a rather unpleasant scramble for the exits. One prefers a little more…grounded sensibility, if you follow.

Applied Digital may be the current darling, but the construction game, as one knows, is rarely kind to complacency. Jacob and Emcor, apparently, are sniffing around the edges of this lucrative market. A bit of competition is always bracing, of course, but one doubts Applied Digital will remain unchallenged for long. The scent of money, you see, attracts all sorts of creatures.

Which brings me, rather neatly, to GoDaddy. Yes, GoDaddy. One remembers the television adverts, featuring that determined race car driver. A touch vulgar, perhaps, but undeniably effective. Founded in 1997, which, in the fevered world of technology, feels almost…historic. It’s not a behemoth, by any means – a mere $13.5 billion – and its growth is hardly stratospheric. Around 8% better than last year, they predict. But, my dear, reliability has a certain charm, don’t you think?

A Solid Foundation

Since 2017, GoDaddy has managed the rather impressive feat of consistently turning a profit. A consistent profit! In this age of speculative mania, that’s practically revolutionary. They’ve built a business that shrugs off the whims of fashion and the vagaries of the market. It’s not glamorous, certainly, but it’s…sturdy. Like a well-made pair of shoes.

The internet, you see, isn’t going anywhere. Quite the contrary, in fact. It’s expanding at a rather alarming rate. Over 386 million website registrations last quarter, they tell me. And these sites aren’t merely gathering dust. They’re being actively used. Hostinger reports a 5% annual growth in active websites. People, it seems, are determined to broadcast their opinions to the world. A slightly terrifying thought, but a profitable one, nonetheless.

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And it’s not just about new registrations. Organizations need more storage, more bandwidth, more…everything. Which means more revenue for GoDaddy. The global web-hosting industry, they predict, will be worth $356 billion by 2029. A rather substantial sum, wouldn’t you agree? And GoDaddy, naturally, is perfectly positioned to capitalize on it. Their average revenue per user is up 10% year-over-year. A most encouraging sign.

They’ve even embraced this ‘artificial intelligence’ nonsense. Airo, their new platform, apparently builds websites without any actual coding. Ingenious, really. It allows the less technically inclined to participate in the digital revolution. And, of course, it generates high-margin revenue. A most satisfactory combination.

A Rather Sensible Investment

Reliable growth is always commendable, of course. GoDaddy doesn’t pay dividends, which some may find disappointing. But their stock buybacks are rather clever. They’ve repurchased 137 million shares in the first three quarters of this year, worth a total of $1.4 billion. Over $5.2 billion in the last four years! That’s a considerable sum, even by current standards.

It’s a bit like tidying up the balance sheet, isn’t it? And it’s had a rather noticeable effect on per-share profit growth. It’s outpaced sales growth, even if sales haven’t been particularly spectacular. They’re getting those shares back at a bargain price, you see.

And the analysts, naturally, are predicting a price target of $175. 80% above the current price. A rather optimistic assessment, perhaps, but one can’t help but feel a certain degree of…validation. The stock’s 55% pullback from its earlier peak feels rather excessive. A gift, really. To those of us with a little foresight and a healthy dose of cynicism.

So, there you have it. A solid, reliable business. A sensible valuation. And a clear path to future growth. It’s not terribly exciting, I grant you. But in a world obsessed with speculative bubbles and fleeting fancies, a little bit of stability is a most welcome thing.

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2026-02-12 19:22