With the recent rise of artificial intelligence (AI), tech giants like Apple, Nvidia, Microsoft, and Alphabet have dominated the preferences of hedge funds on Wall Street. However, in recent weeks, a new player in the tech sector has captured a significant amount of attention: GoDaddy ($GDDY).
The stock of that firm has climbed more than 45% in the last six months. But the greenback has risen by more than 130% in the year-to-date. In the last five days, GDDY has climbed by more than 3%.
This company, known for offering internet domain sales services and associated solutions for millions of small businesses globally, is seeing a significant increase in interest in its shares, as can be seen from the performance of its stock.
According to data from Investor’s Business Daily, top hedge fund managers have bought more than $2 billion worth of GoDaddy stock since the beginning of the month. This interest has pushed the company’s valuation to record levels.
GoDaddy: What’s behind its rise
In addition, the ranking of the most popular stocks on the market includes Howmet Aerospace with $678 million, Hilton with $582 million, Intuitive Surgical with $564 million and DR Horton with $545 million. This year, none of the so-called “megacaps” or Wall Street’s Magnificent Seven were included.
High demand has propelled GoDaddy to a 55% appreciation so far this year, bringing its total value to $22 billion. Much of this optimism is due to the company’s strong financial health. In the second quarter of the year, GoDaddy reported revenue of $1.124 billion, marking an increase of 7% compared to the previous year. In addition, its net income experienced a remarkable increase of 76% year-over-year, reaching $146 million.
GoDaddy CEO Aman Bhutani expressed his satisfaction with the company’s performance, highlighting the success of the quarter and progress on its key initiatives, especially in relation to its AI-powered technology, GoDaddy Airo.
Bhutani emphasized the company’s tremendous long-term growth opportunity and commitment to creating value for its customers through innovative solutions and enhanced experiences.
Source: Ambito
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