GoDaddy Inc. (GDDY) shares tumbled 7.63% over a 24-hour period, as the company’s second-quarter earnings release after Thursday’s market close sparked a sharp sell-off despite beating estimates. The stock had rallied earlier in the week on bullish institutional expectations, but those gains were completely erased during the regular session and after-hours trading, culminating in a significant 24-hour decline.

The plunge was driven by a classic sell-the-news reaction. GoDaddy reported Q2 adjusted earnings per share of $1.83, surpassing the consensus estimate of $1.70, and revenue of $1.3 billion, slightly above expectations. However, investors locked in profits following a pre-earnings rally, and the after-hours drop extended the losses. Adding to the cautious sentiment, the company narrowed its full-year revenue guidance to a range of $5.22 billion to $5.26 billion, which was perceived as a headwind amid slower adoption of AI tools and weaker customer acquisition. GoDaddy also noted that the third quarter represents its toughest comparison against strong aftermarket performance in the prior year.

The combination of a guarded outlook, the narrowed revenue forecast, and profit-taking overshadowed the otherwise solid earnings beat, leading to the steep 24-hour decline.