GoDaddy Inc. GDDY recently acquired the majority of domain names from a private company, the Worldwide Media, Inc., for an undisclosed amount. In response to the news, shares went up almost 4% to a high of $34.40, eventually closing at $33.94.
The portfolio consists of approximately 70,000 domain names, including 373.com, Faculty.com, CarAuctions.com and iBill.com. It also includes domain names targeted at small businesses such as BikeRentals.com, EventPlanning.co and KitchenChef.com.
The acquired domain names will be available for purchase on Afternic's Fast Transfer Network (DLS) at competitive prices. Afternic will provide the exact name or a list of alternatives to those who place a request for a specific name.
In 2013, GoDaddy acquired Afternic which operates the world's largest premium domain reseller network, including 18 of the top 20 registrars. Since then, the company has extended the technology platform to expand the number of premium domain names available in its search results.
According to Mike McLaughlin, Senior Vice President and General Manager of GoDaddy, the company strives to ensure that customers get the perfect online name for their business or hobby.
GoDaddy has been acquiring companies to bolster its domain name portfolio. This April, the company bought about 200,000 domain names from Marchex for $28.1 million, plus a potential earnout.
Going Forward
GoDaddy designs and develops cloud-based technology products for individuals, small businesses, and web design professional. Its products include domain, hosting, presence, and business applications. The company incurred lower-than-expected loss in the third quarter, while revenues beat the Zacks Consensus Estimate.
Going forward, investment in products, technology platform, and customer care as well as delivering innovative and increasingly personalized products and services globally will drive shareholders’ value.
GoDaddy currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the same space are Stamps.com Inc. STMP, Travelport Worldwide Limited TVPT and RetailMeNot, Inc. SALE. All these stocks sport a Zacks Rank #1 (Strong Buy).
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