GoDaddy (GDDY) stock fell 12% intraday as Wall Street's confidence in its AI strategy waned, with William Blair downgrading its rating to "Market Perform."
GoDaddy announced quarterly revenue and earnings that exceeded market expectations, but its stock price still fell sharply. Analysts pointed out that investors are more concerned about the company's future outlook than recent performance, particularly regarding its strategy to expand into agent-based AI products. William Blair analyst Arjun Bhatia downgraded GoDaddy's stock rating from "Outperform" to "Market Perform," while Piper Sandler maintained a "Neutral" rating, believing there is a lack of clear catalysts for revenue growth. Although GoDaddy's Airo AI platform's annualized booking run rate soared fivefold to $50 million in one quarter, and profitability strengthened, Wall Street's concerns about the potential impact of AI on its core business are still intensifying.
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