GoDaddy Inc. (GDDY): Jim Cramer Is Surprised At Morgan Stanley's Report
GoDaddy Inc. (NYSE:GDDY) is an internet company that enables businesses to establish an online presence by setting up their websites. Its shares have lost 28% year-to-date after suffering from a steep 14% drop in February and an 11% dip in August. GoDaddy Inc. (NYSE:GDDY)'s shares fell in February after a fourth quarter revenue dip, while the August drop was driven by a weak EPS number, which beat analyst estimates by a rather modest three cents. Cramer discussed Morgan Stanley's decision to include GoDaddy Inc. (NYSE:GDDY) on its list of firms at risk from AI-led disruption, as he mentioned the firm's advertisement with actor Walton Goggins:
'[On being included in Morgan Stanley's basket of companies at AI risk] Oh come on, Goggins, man!'
Copyright: rawpixel / 123RF Stock Photo
Here are Cramer's earlier thoughts about GoDaddy Inc. (NYSE:GDDY):
'As did by the way GoDaddy. . . I have GoDaddy on, I was kind of like, wow, that happened fast.
While we acknowledge the potential of GDDY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
8 minutes ago
- Yahoo
NexPoint Real Estate Finance's (NYSE:NREF) investors will be pleased with their 2.7% return over the last three years
Explore NexPoint Real Estate Finance's Fair Values from the Community and select yours In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But the risk of stock picking is that you will likely buy under-performing companies. We regret to report that long term NexPoint Real Estate Finance, Inc. (NYSE:NREF) shareholders have had that experience, with the share price dropping 32% in three years, versus a market return of about 57%. So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During five years of share price growth, NexPoint Real Estate Finance moved from a loss to profitability. We would usually expect to see the share price rise as a result. So given the share price is down it's worth checking some other metrics too. We note that the dividend seems healthy enough, so that probably doesn't explain the share price drop. It's good to see that NexPoint Real Estate Finance has increased its revenue over the last three years. If the company can keep growing revenue, there may be an opportunity for investors. You might have to dig deeper to understand the recent share price weakness. You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). We know that NexPoint Real Estate Finance has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for NexPoint Real Estate Finance in this interactive graph of future profit estimates. What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, NexPoint Real Estate Finance's TSR for the last 3 years was 2.7%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! A Different Perspective NexPoint Real Estate Finance shareholders gained a total return of 6.8% during the year. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 11% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. It's always interesting to track share price performance over the longer term. But to understand NexPoint Real Estate Finance better, we need to consider many other factors. For example, we've discovered 3 warning signs for NexPoint Real Estate Finance (2 can't be ignored!) that you should be aware of before investing here. But note: NexPoint Real Estate Finance may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 minutes ago
- Yahoo
Why the stock market has been shocked this summer
I have been shocked by three things this summer. First, how many burpees I can do in 10 minutes. I'm proud of my progress on these; it's taken a lot of hard work. Second, the price increases on car cleaning products. I have no clue if it's because of tariffs. But I sort of understand better why shares of Advance Auto Parts (AAP) are up 20% year to date, while Autozone (AZO) has rallied 25%, compared to the S&P 500's (^GSPC) 10% advance. The third shocker has been the current earnings season, which is coming to a close with results next week from Walmart (WMT), Target (TGT), and Home Depot (HD). Looking for the simplest reason why the markets have seemingly gone up in a straight line this summer? It's not necessarily because of the potential for a measly 25 basis point rate cut at the Federal Reserve's September meeting. Is a 25 basis point rate cut really that big of a deal? I would argue no, especially when there's no indication it will be the start of up to eight rate cuts through 2026 — as some of my Wall Street sources have been talking about over $25 cocktails this month. This earnings season equals rocket fuel for the stock market. The stats tell the upbeat story. According to FactSet data, 81% of S&P 500 companies have reported positive earnings per share surprises. 81% of S&P 500 companies have also reported a positive revenue surprise. Sectors with above-80% earnings beat scores include industrials, healthcare, financials, consumer staples, real estate, and information technology. Companies that have issued positive guidance have trumped those issuing negative guidance. Second quarter earnings growth is clocking in at 11.8%, the third straight quarter of double-digit growth for the S&P 500. Read more: Live coverage of corporate earnings What's more interesting is that despite all the whipsawing from the White House, companies are sounding less downbeat on the economy. At least from the standpoint of worrying about a recession. Overall, the term 'recession' was cited on 16 earnings calls conducted by S&P 500 companies this earnings season, according to FactSet. This number is trending well below the five-year average of 74 and the 10-year average of 61. Whether this current earnings season will be as good as it gets for 2025 is anyone's guess. Tariff inflation lurks in the third quarter, and the bar has been set much higher. Companies will enter the third quarter earnings season with above-historical valuations and expectations of strong 2026 outlooks or directionally bullish commentary on the path forward. "It's a fair point and it's certainly a risk," Truist co-chief investment officer Keith Lerner said on Opening Bid when I asked if second quarter earnings could be the best of the year. "We also know from some reports, even from UPS, that a lot of these companies brought in inventory before the tariffs went into effect. So therefore their margins were probably helped." Another surprise for me has been how fast executives have been able to move to blunt Trump's supply chain chaos. Many companies have now built in structural safeguards into their businesses to preserve profits from tariff hits. And if Team Trump chills out, the structural shifts could unlock even better earnings potential. "We've done a lot [over the past 90 days to blunt tariffs], as you would expect, actually," Cisco CFO Mark Patterson said on Opening Bid (video above). "So we've got a world-class global supply chain. And I think this is one of the places where our scale actually is an advantage for us. So the teams have been working hard." As always, investing is one big bag of surprises! Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Sign in to access your portfolio
Yahoo
8 minutes ago
- Yahoo
How Much Richer Is Warren Buffett Than Donald Trump?
No matter how you define wealth, there's no doubt that even rich people have vastly different degrees of it. Warren Buffett: Check Out: For example, Donald Trump was rich before he won a second term to the White House, and has grown that wealth even more since taking office. But you could still multiply his wealth by a factor of 28 and it wouldn't be as big of a fortune as that of Warren Buffett. How Much Richer Is Buffett? Buffett, the CEO of Berkshire Hathaway and legendary 'Oracle of Omaha,' has a net worth of $142.8 billion, according to the latest estimates from according to the latest estimated from Forbes. That ranks him as the ninth richest person in the world. The richest, Elon Musk, has a net worth of $413.8 billion. In contrast, Forbes pegs Trump's net worth at $5.7 billion — which places him as the 755th richest person in the world. Trump and Buffett are both rich under just about any definition. To put their net worths in perspective, consider this: Michael Dell ranks as the 11th richest person in the world with a net worth of $128.2 billion. But if Trump could magically add Dell's wealth to his own, it still would fall well short of Buffett. Be Aware: Buffett's Road to Riches One reason Buffett is so much richer than Trump is he has spent decades as one of the world's savviest investors, building Berkshire Hathaway into a financial powerhouse whose biggest holdings include iconic brands such as Apple, Coca Cola, Bank of America and Chevron. The 94-year-old plans to step down as Berkshire CEO at the end of the year, but will remain as chairman. Buffett came from a fairly modest background in Nebraska, and got bitten by the investment bug early, buying his first stock at age 11, Forbes reported. One thing he learned is that stocks can be a sure path to wealth — if you follow the right investment strategy. In Buffett's case, that strategy includes investing for the long term, putting money only into companies and businesses he understands, and focusing on value stocks rather than high flyers. Trump's Road to Riches Trump made most of his money in real estate — a business that he learned from his father, Fred, a millionaire real estate developer in New York City. According to a Forbes analysis of Trump's wealth, he first became a billionaire in 1988. He dropped off Forbes' billionaire list from 1990 to1996, but returned in 1997 and has been on it ever since. Here's a look at Trump's net worth since returning to billionaire status in 1997: 1997: $1.4 billion 2000: $1.7 billion 2005: $2.7 billion 2010: $2.4 billion 2015: $4.5 billion 2020: $2.5 billion 2025 (latest estimate): $5.7 billion As the above chart shows, Trump's net worth has reached its highest point ever since he began his second term in the White House. According to Forbes, he has presided over the 'most lucrative post-presidency in American history, selling his supporters NFTs, coffee-table books and, most importantly, shares of a money-losing social-media venture.' More From GOBankingRates 5 Old Navy Items Retirees Need To Buy Ahead of Fall Mark Cuban Tells Americans To Stock Up on Consumables as Trump's Tariffs Hit -- Here's What To Buy This article originally appeared on How Much Richer Is Warren Buffett Than Donald Trump? Sign in to access your portfolio
