On Tuesday, JPMorgan showed confidence in GoDaddy Inc (NYSE:) by raising its price target to $136 from $128, while maintaining an Overweight rating on the stock. The revision comes as GoDaddy has begun rolling out its new AI product, Airo, to its current customer base, ahead of schedule. This product launch follows a period of feature testing with new customers starting with its soft launch in November 2023.
Airo is described as a powerful AI-enabled tool designed to help new customers get started more efficiently. The AI solution is praised for its potential to remove barriers to user engagement, positioning GoDaddy’s user experience as highly seamless for individual creators compared to other offerings in the market.
While Airo is not currently monetized as a standalone product, it is expected to evolve into a premium feature, adding advanced generative AI capabilities that could generate additional revenue.
The JPMorgan analyst expressed a positive outlook on Airo’s impact, suggesting it could serve as an accelerator for cross-selling to GoDaddy’s existing customer base. This optimistic view extends to the company’s financial performance, with the analyst pointing to potential upside to management’s forecast for fiscal 2024, especially in the second half of the year.
Insights on InvestingPro
As GoDaddy Inc (NYSE:GDDY) embraces the artificial intelligence revolution with its new product Airo, real-time data from InvestingPro highlights the company’s strong financial health and market performance. With a market capitalization of $17.26 billion and a P/E ratio of 13.03 reflecting investor confidence, GoDaddy stands out for its high shareholder returns and low price volatility, as highlighted by InvestingPro Tips. Furthermore, the company has posted a significant return, with a one-year total price return of 55.83% and sitting at 98.6% of its 52-week high.
These metrics, combined with profitability expectations this year, according to InvestingPro Tips, are in line with JPMorgan’s optimistic outlook. While the company’s net income is expected to decline, its aggressive stock buybacks and strong returns over the past year demonstrate a proactive management strategy. With this information and Airo’s potential to contribute to the company’s growth, investors can explore further with InvestingPro, which offers 16 more tips, using the coupon code PRONEWS24 for an extra 10% discount on the annual or biennial Pro and Pro+ subscription.
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