$GoDaddy(GDDY)$ reported higher revenue, margins and free cash flow, but its shares plunged 16.7% on July 31. Investors appear unconvinced that the company’s early AI momentum is large enough to overcome slowing core growth and a cautious forecast.
GoDaddy released its results after the July 30 market close. Revenue increased 7% to $1.30 billion, while operating income rose 29% to $342.5 million. Free cash flow increased 13% to $443.5 million, and its normalised EBITDA margin expanded by 210 basis points to 33.4%. GoDaddy’s official second-quarter release provides the figures.
Applications and Commerce revenue increased 11%, substantially faster than the 4% growth recorded by the Core Platform division. This supports the bullish argument that GoDaddy can sell website, marketing and commerce tools to existing domain customers rather than depending entirely on new domain registrations.
Its Airo AI platform reached a $50 million annualised bookings run rate, up from $10 million one quarter earlier. That is rapid growth, but still small relative to GoDaddy’s projected annual revenue above $5.2 billion.
Customer growth also remained modest. GoDaddy finished the quarter with 20.5 million customers, adding only 22,000 during the quarter. Management projected third-quarter revenue growth of approximately 5% and narrowed full-year revenue guidance to $5.215–$5.255 billion. Reuters’ report on the narrowed outlook explains the market’s concern about AI adoption and customer acquisition.
The stock fell from $99.30 to $82.74. It traded as low as $73.67 before recovering substantially, indicating that some investors considered the initial decline excessive.
GGD Daily Chart
GoDaddy’s daily chart has deteriorated sharply after the post-earnings selloff, with price falling back below the prior $94–$95 breakout area and the 200-day moving average near $100.60, which turns both levels into overhead resistance. The stock is now testing the lower part of its broader base around $80–$83, while a deeper support zone sits near $74–$76, where buyers previously stepped in.
Because momentum is still negative and the earnings gap-down has not yet stabilized, I would avoid selling puts immediately into the first day of weakness; the better setup would be to wait for a few sessions of consolidation or a bullish reversal above roughly $83–$85, then consider a 30–45 DTE cash-secured put around the $75 strike, ideally near 0.10–0.15 delta, so the strike sits below the current price and close to stronger technical support. This allows the trade to benefit from elevated post-earnings implied volatility and time decay, but assignment risk remains meaningful, so the position only makes sense if owning GoDaddy at an effective cost below $75 is acceptable; a decisive break below the mid-$70s would invalidate the support thesis and make put selling less attractive.
The evidence leans neutral to moderately bearish. Cash flow and margins are strong, but customer growth and forward revenue expectations do not yet support the AI narrative. The cautious view would be invalidated by faster customer additions, Airo becoming financially material or revenue accelerating without sacrificing margins. This is personal opinion for education and is not financial advice.
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Disclaimer: This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The views expressed are personal opinions based on publicly available information and are subject to change without notice. Investors should conduct their own research and consider their financial situation, risk tolerance, and investment objectives before making any investment decisions. I do not guarantee the accuracy or completeness of the information presented.
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