Stock Track | GoDaddy Plummets 18.28% in Pre-market on Weak Revenue Guidance, Slow AI Adoption and Analyst Price Target Cuts

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GoDaddy's stock plummeted 18.28% in pre-market trading on Wednesday, extending significant 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, Morgan Stanley, UBS, and B. Riley, further pressuring the stock.

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