GoDaddy (GDDY) Surges 4.6%: Is This an Indication of Further Gains?
GoDaddy GDDY shares rallied 4.6% in the last trading session to close at $100.81. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 0.9% gain over the past four weeks.
GoDaddy is sustaining steady demand as higher-value customers adopt more products and Airo becomes a larger part of the platform experience. Applications & Commerce continues to outgrow Core Platform, while pricing, bundling and AI-led productivity support margin expansion and cash generation.
This cloud-based technology products developer is expected to post quarterly earnings of $1.81 per share in its upcoming report, which represents a year-over-year change of +19.9%. Revenues are expected to be $1.33 billion, up 4.9% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For GoDaddy, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on GDDY going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
GoDaddy is part of the Zacks Internet - Delivery Services industry. QuinStreet QNST, another stock in the same industry, closed the last trading session 0.8% higher at $14.4. QNST has returned -27.4% in the past month.
QuinStreet's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.39. Compared to the company's year-ago EPS, this represents a change of +77.3%. QuinStreet currently boasts a Zacks Rank of #1 (Strong Buy).
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This article originally published on Zacks Investment Research (zacks.com).
