GoDaddy Aids Small Business Marketing in Digital Sector

GoDaddy GDDY is expanding its footprint in the digital marketing space with the launch of its all-in-one Digital Marketing product. The tool is designed to empower small business owners by simplifying and enhancing their online marketing activities.

Recognizing challenges that entrepreneurs face, such as limited time, budget and expertise, GoDaddy's new offering integrates essential tools like Search Engine Optimization (SEO), social media and email marketing into a single platform.

The latest launch enables businesses to manage their marketing strategies more efficiently and effectively, regardless of where their website is hosted.

With advanced AI-powered features, including customizable content creation, digital ads and a unified inbox for streamlined communication, GoDaddy Digital Marketing provides a comprehensive solution for small businesses aiming to grow and thrive in the competitive digital landscape.

GoDaddy's Strong Portfolio Aids Prospect

The latest move will solidify GDDY's presence by offering an all-in-one digital marketing solution that simplifies and enhances small business marketing efforts.

Per a Mordor Intelligence report, the digital market is expected to be valued at USD 1.38 trillion in 2024. It is projected to reach USD 3.62 trillion by 2029, exhibiting a CAGR of 21.32% between 2024 and 2029.

Strong momentum in the promising digital market is expected to instill investor optimism in the stock.

GDDY's focus on small businesses and expanding clientele has been a major growth driver.

In the second quarter of 2024, the company launched the Digital Marketing Suite, a new customer onboarding path offering personalized marketing tools and content on a single dashboard to help users build their brand, generate leads and grow their businesses, even without a website.

In May, the company expanded its Small Business GenAI Prompt Library, offering more than 185 updated prompts and new capabilities to support small business owners globally.

GoDaddy also introduced the Smart Terminal Flex in April, a compact and versatile Point of Sale terminal designed to improve efficiency for small businesses through modern features and seamless integration across various sales channels.

GDDY's efforts are expected to help it acquire numerous small businesses as customers, which, in turn, will drive its top-line growth in the days ahead.

GoDaddy expects third-quarter 2024 revenues in the band of $1.13-$1.15 billion, indicating year-over-year growth of 7% at the mid-point. The Zacks Consensus Estimate for the same is pegged at $1.14 billion, suggesting a rise of 6.83%.

The consensus mark for earnings is pegged at $1.25 per share, up by a penny in the past 30 days. The projection suggests a 40.45% year-over-year growth.

Zacks Rank & Other Stocks to Consider

Currently, GoDaddy carries a Zacks Rank #2 (Buy).

The stock has surged 53.5% against the Zacks Computer and Technology sector's growth of 22.5% in the year-to-date period.

Some other top-ranked stocks in the broader technology sector are Arista Networks ANET, Badger Meter BMI and Daktronics DAKT, each sporting a Zacks Rank #1(Strong Buy) at present.

Arista Networks' shares have appreciated 50.2% in the year-to-date period. The long-term earnings growth rate for ANET is pegged at 17.20%. 

Badger Meter's shares have gained 30.5% in the year-to-date period. The long-term earnings growth rate for BMI is pegged at 17.91%.

Shares of Daktronics have surged 79.3% in the year-to-date period. The long-term earnings growth rate for DAKT is pegged at 30%.

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