GoDaddy Inc (GDDY) is a technology company that operates a web domain marketplace. The stock made its public debut today opening much higher than the $17-$19 expected range. The stock is currently trading north of $26 as investors seem to be flocking to the newly listed stock. After IPO day will GDDY stock still be a buy?
GoDaddy Inc will likely face stiff competition from players like Amazon and Goolge but GDDY is a very established name in the space. GoDaddy Inc has over 13 million customers in countries around the world. Currently GoDaddy Inc manages nearly 60 million domains and has been seeing red hot revenue growth over the past 3 years. Revenues have grown over 50% over that time period and ventures into new products and services is likely to drive further growth for GDDY.
GDDY has begun offering a range of new services to new and existing customers. Customers can now purchase email domains, a suite of ecommerce tools, and many other products and services geared towards small businesses. This array of new services could help drive revenue growth in the future for GDDY.
Despite a great initial offering and a range of new services that could drive growth I would not want to play GDDY until the options list. Options always offer a trader a better risk vs. reward setup so for me the play is to wait for a few weeks and then play it via options. This also allows for the Ichimoku Cloud to develop on shorter time frames. I think GDDY will be a strong stock in 2015 but will wait for the options.