On Tuesday, JPMorgan (NYSE:JPM) showed confidence in GoDaddy Inc (NYSE:GDDY) by increasing its price target to $136 from $128, while keeping an Overweight rating on the stock. The revision comes as GoDaddy began rolling out its new AI product, Airo, to its current customer base, earlier than anticipated. This product launch follows a period of feature testing with new customers since 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 solo-creators compared to other market offerings.
Although Airo is not currently monetized as a standalone product, there is an expectation that it could evolve into a premium feature, adding advanced Generative AI capabilities that could generate additional revenue.
The analyst from JPMorgan expressed a positive outlook on Airo's impact, suggesting it could act 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 indicating potential upside to the management's fiscal year 2024 guidance, especially in the second half of the year.
InvestingPro Insights
As GoDaddy Inc (NYSE:GDDY) embraces the AI revolution with its new product Airo, real-time data from InvestingPro underscores the company's robust 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 with a high shareholder yield and low price volatility, as highlighted by InvestingPro Tips. Additionally, the company has been experiencing a significant return, with a 55.83% one-year price total return and standing at 98.6% of its 52-week high.
These metrics, combined with the expectation of profitability this year, as per InvestingPro Tips, align with JPMorgan's optimistic outlook. While the company's net income is anticipated to drop, the aggressive share buybacks and the powerful returns over the last year demonstrate a proactive management strategy. With these insights and the potential for Airo to contribute to the company's growth, investors can explore further with InvestingPro, which offers an additional 16 tips, using the coupon code PRONEWS24 for an extra 10% off a yearly or biyearly Pro and Pro+ subscription.
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