GoDaddy (GDDY) Reaches Out to Small Businesses With Latest Move
GoDaddy GDDY is making concerted efforts toward delivering enhanced experience to small businesses on the back of generative AI techniques.
This is evident from the latest move of infusing generative AI technology into the company’s Website Builder tool.
With the help of this, GoDaddy strives to reduce the time taken by businesses to write content for their websites.
Website Builder now enables a conversational environment through AI integration, which helps businesses in getting their website built with proper images and content.
The tool suggests content for important pages like About Us and FAQs. Also, it takes care of the need to update the existing pages, thus saving the time businesses spend on writing the content.
Further, it enables businesses to highlight their unique offerings and connect with their target audience more efficiently.
We believe the latest move will drive GoDaddy’s momentum across various businesses, especially the small ones.
GoDaddy Inc. Price and Consensus
GoDaddy Inc. price-consensus-chart | GoDaddy Inc. Quote
Growing Focus on Small Businesses
GoDaddy's latest move highlights its deepening focus on the needs of small entrepreneurs and expanding its offerings for them.
Apart from the latest AI integration in Website Builder, GoDaddy recently teamed up with Microsoft to assist small businesses in accepting payments during Microsoft Teams-enabled live conversations with clients.
Further, it integrated Apple's Tap to Pay feature into its free mobile app, allowing small businesses to accept contactless payments seamlessly just with an iPhone. This move removes the requirement of a dongle or a card reader for small entrepreneurs to accept contactless payments.
Additionally, GoDaddy introduced a Small Business Generative AI Prompt Library that contains over 35 prompts.
The new generative AI-backed library is designed to provide small firms access to the same level of expertise and capability typically available to huge enterprises. Moreover, it tackles some of the most common issues that small business owners encounter when starting or running their ventures.
Furthermore, the company, in collaboration with Worldpay from FIS, introduced a solution called Commerce 360. The solution combines the business capabilities of GoDaddy and the payment expertise of Worldpay to allow small enterprises to take payments through any channel and sell through online marketplaces and social media.
To Conclude
We believe the abovementioned endeavors will aid GoDaddy in acquiring various small businesses as its customers, thus driving its top line.
In first-quater 2023, the company had 21 million customers, up 0.5% year over year. Further, the company witnessed 85% customer retention.
GoDaddy expects 2023 revenues in the band of $4.250-$4.325 billion, suggesting growth of 5% at the mid-point from the year-ago actuals.
The Zacks Consensus Estimate for 2023 revenues is pegged at $4.27 billion, implying growth of 4.5% from 2022.
Zacks Rank & Stocks to Consider
Currently, GoDaddy carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Palo Alto Networks PANW, Akamai Technologies AKAM and AMETEK AME. Palo Alto Networks and Akamai Technologies sport a Zacks Rank #1 (Strong Buy), while AMETEK carries a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Palo Alto Networks shares have increased 74.8% in the year-to-date period. The long-term earnings growth rate for AMX is currently projected at 31.5%.
Akamai shares have increased 5.1% in the year-to-date period. The long-term earnings growth rate for AKAM is currently projected at 10%.
AMETEK shares have increased 11.7% in the year-to-date period. The long-term earnings growth rate for AME is currently projected at 8.95%.
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