GoDaddy's stock experienced a significant pre-market plunge of 9.06% on Wednesday, extending losses from the previous after-hours session.
The sharp decline follows the company's fourth-quarter earnings report, where despite beating earnings per share estimates, GoDaddy issued revenue guidance that fell short of analyst expectations. The company forecast first-quarter revenue between $1.25 billion and $1.27 billion, below the consensus estimate of $1.28 billion, and projected full-year revenue of $5.20 billion to $5.28 billion, missing the anticipated $5.29 billion.
GoDaddy attributed its cautious outlook to slower-than-expected adoption of its artificial intelligence tools and weaker customer acquisition in its core web hosting business. The disappointing guidance triggered a wave of analyst price target reductions from major firms including JP Morgan, RBC, Barclays, Wells Fargo, and B. Riley, further pressuring the stock in pre-market trading.