GoDaddy GDDY is constantly making efforts to strengthen its offerings, especially for small businesses.
This is evident from the latest introduction of a Small Business Generative AI Prompt Library that contains over 35 prompts.
The new generative AI-backed library is designed to provide small firms access to the same level of expertise and capability typically available to huge enterprises. Moreover, it tackles some of the most common issues that small business owners encounter when starting or running their ventures.
The prompts are specifically created to help small businesses in getting the correct results from generative AI tools like OpenAI's ChatGPT and Google's Bard.
GoDaddy intends to add more prompts throughout the year and create new strategies for small businesses to use generative AI and the library is just the beginning.
GoDaddy Inc. Price and Consensus
GoDaddy Inc. price-consensus-chart | GoDaddy Inc. Quote
What’s in Store for GoDaddy?
We believe the latest move is likely to aid the company’s momentum among small businesses and consequently its customer base in the days ahead.
It will drive the company’s top-line growth as well.
For 2023, management expects total revenues in the range of $4.250-$4.325 billion, suggesting growth of 5% at the midpoint from the year-ago reading. The Zacks Consensus Estimate for the same is pegged at $4.27 billion, indicating growth of 4.4% from 2022.
Additionally, the move is likely to aid GoDaddy in penetrating the promising generative AI market, which, per a report from Grand View Research, is likely to hit $109.4 billion by 2030 at a CAGR of 34.6% between 2022 and 2030.
Growing prospects in this booming space are likely to instill investor optimism in the stock.
Notably, GDDY has gained 2% in the year-to-date period against the industry’s growth of 3.6%.
Expanding Portfolio Strength
The latest move is in line with GoDaddy's focus on leveraging advanced technologies to provide innovative solutions to its business clients.
Apart from the latest move, GoDaddy announced a partnership with Fidelity National Information Services FIS to introduce Commerce 360, an all-in-one omnichannel solution.
The solution will combine GoDaddy’s easy-to-use business tools with Fidelity National’s Worldpay payments expertise for providing e-commerce products to small and medium-sized enterprises.
Further, GoDaddy announced the launch of Payable Domains, a service that enables small businesses to register a new domain and accept payments from customers shortly after purchase.
We believe that the growing portfolio offerings will continue to drive GoDaddy’s customer momentum in the days ahead.
Zacks Rank and Stocks to Consider
Currently, GoDaddy carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are Arista Networks ANET and Salesforce CRM. Both Arista Networks and Salesforce sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks has gained 34.4% in the year-to-date period. The long-term earnings growth rate for ANET is currently projected at 14.17%.
Salesforce has gained 44.4% in the year-to-date period. CRM’s long-term earnings growth rate is currently projected at 16.75%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report