GoDaddy Marketcap $14.053 Billion? Seriously? Lol

[WhoaDomain.com]

So out of curiosity did a check on Godaddy stock and found out Godaddy's marketcap is $14.053 billion? Am I seeing this right? I never realized this. I figured "maybe" $600-$700 million tops but $14.053 billion? That's insane.

Must be all those expired domains they auctioned off! You know. The ones you researched and allowed to expired and go into redemption? The ones you couldn't sell for even $20 at auction at Godaddy auctions? but somehow sold for $1200 at expired auction at Godaddy auctions? lol Yup those domains.

I'm assuming also this valuation is in part because almost all websites on the planet are hosted by them.

Until of course Wix came into the picture. It seems Wix is now overtaking them as the world largest hosting provider.

https://www.techradar.com/news/wix-edges-past-godaddy-to-become-worlds-biggest-web-hosting-company

Wix now has a marketcap of $15 billion?

 

[Jimmysun]

Just for domain name aspect, I think because GD has multiple charges like auction fee, listing fee, private protection fees(I really don’t know how it works since they said will avoid domain hijacking, prevent credit card expired, etc.) which other registrar charge these functions for free.
For building websites wix is way better than godaddy.

 

[blogspotter]

yep, all the expired auctions.... specially SEO domains

 

[NickB]

If you look at their latest quarterly statement it shows a good portion of their revenue is through domain activities

https://d18rn0p25nwr6d.cloudfront.net/CIK-0001609711/97595e09-7358-4c35-9709-d7c3e1c4b5b2.pdf

Compared to last and they are up about $71 million in domain revenue for the first 6 months of the year.

Total revenue just for domains is $725.5 million up to June 30th 2020 - which is not bad at all.......

 

[boker]

I don't know about marketcap, but the total revenue for 2019 was just under 3 billions and just a small fraction was from selling domain names, most of the revenue is from hosting and websites. Also, they have 2 billions and something long term debt, so the pure profit is way lower, around 30 millions profit, after covering everything, only from selling domain names.
https://www.macrotrends.net/stocks/charts/GDDY/godaddy/revenue

 

[AEProgram]

To add to what others said, valuations now in tech are very high. Between Sep 2019 and now their valuation jumped by about 3 billion.

All said, the Godaddy valuation of 14 billion makes more sense than the 500 billion Tesla valuation

 

[NickB]

I don't know about marketcap, but the total revenue for 2019 was just under 3 billions and just a small fraction was from selling domain names, most of the revenue is from hosting and websites. Also, they have 2 billions and something long term debt, so the pure profit is way lower, around 30 millions profit, after covering everything, only from selling domain names.
https://www.macrotrends.net/stocks/charts/GDDY/godaddy/revenue

According to the figures for this year domain revenue is leading the way......

Revenue: Six Months Ended June 30,

Domains - $725.5 million
Hosting and presence - $589.4 million
Business applications - $283.5 million

What I would be really interested in is the breakdown for domain revenue - auctions, renewals, privacy, new registrations etc - also would any sales from their domain portfolio come under this bracket?

Under the goodwill & Intangible assets section they have their domain portfolio listed at $235.2 million - is this part of the Uniregistry acquisition?

I am not that good with Financial statements, hence the questions.....

 

[boker]

To add to what others said, valuations now in tech are very high. Between Sep 2019 and now their valuation jumped by about 3 billion.

All said, the Godaddy valuation of 14 billion makes more sense than the 500 billion Tesla valuation

Counting just the valuations, uber is around 70 billions and still the net loss is at least 5 billions a year, so you can have high valuation, but loosing money.

 

[boker]

According to the figures for this year domain revenue is leading the way......

Revenue: Six Months Ended June 30,

Domains - $725.5 million
Hosting and presence - $589.4 million
Business applications - $283.5 million

What I would be really interested in is the breakdown for domain revenue - auctions, renewals, privacy, new registrations etc - also would any sales from their domain portfolio come under this bracket?

Under the goodwill & Intangible assets section they have their domain portfolio listed at $235.2 million - is this part of the Uniregistry acquisition?

I am not that good with Financial statements, hence the questions.....

I'm not an expert myself, but I know that most of the revenue and valuations is empty air, if you can't turn around a decent profit. You can see this mostly with big companies, even amazon and tesla. The valuations are based on what they could make in the future and not what they really make. That's one reason why you can see sometimes so huge fluctuations in value. For a small company, you know what you have, what you can sell in a year and what profit you can turn around, but it's not the same for big players.