GoDaddy Well-Equipped to Address Needs of Businesses Through AI, RBC Says

MT Newswires Live12-04

GoDaddy (GDDY) is well-equipped to profitably address the evolving needs of small and medium-sized businesses through artificial intelligence, rather than being disrupted by it, RBC Capital Markets analysts said in a Wednesday note.

The key topics discussed at the company's investor meeting were, firstly, cost management as users test new websites and applications with AI, and secondly, pricing implications as websites take less time to build for professionals, RBC said.

Analysts said the company emphasized that it will maintain the capacity to put up paywalls if a user's site creation requires "too much" computation.

GoDaddy's management noted that its approach to owning the hosting infrastructure is enabling cost controls even when elevated computation is required, analysts said.

RBC has an outperform rating on the stock and a $200 price target.

Price: 131.17, Change: +2.85, Percent Change: +2.23

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