GoDaddy (GDDY) stock fell more than 14% to a two-year low on February 25. The sell-off followed the company’s issuance of a weaker-than-expected revenue forecast for 2026.
While Q4 2025 earnings per share exceeded analyst estimates, the soft guidance overshadowed the quarterly results. Management attributed the weak forecast to a successful, low-priced one-year .com domain promotion. This initiative increased new customer acquisition but reduced upfront bookings and near-term revenue.
Several analyst firms, including Barclays, lowered their price targets on the stock following the announcement. On February 26, a shareholder rights law firm launched a securities fraud investigation regarding GoDaddy’s disclosures about the promotion’s financial impact.