Jul. 31 at 2:48 PM
$GDDY Am I missing something here?
The stock is down more than 20%, yet the business hardly looks broken.
Some numbers from Q2:
• Revenue +7%
• Applications & Commerce +11%
• Free cash flow +13%
• TTM FCF:
$1.73B
• 2026 FCF guidance: ~
$1.8B
• EBITDA margin above 33%
• Share count down another 11% YoY
At today’s price (~
$78):
• Market cap ≈
$10.5B
• Enterprise value ≈
$13B
• EV / 2026 FCF ≈ 7x
Yes, management narrowed revenue guidance and AI monetization may take longer than expected.
But does that really justify wiping out more than
$2.5B in market value in a single day?
Unless free cash flow permanently deteriorates, this looks more like a valuation reset than a broken business.
