JPMorgan Chase & Co trimmed its stakes in Godaddy Inc. (NYSE:GDDY), as the technology provider for small businesses went on to post better than expected third quarter financial results. The company reported a 23% increase in revenue helped by growing number of customers and the acquisition of Host Europe Group last year.
The stock has been on an impressive run this year, having risen from $35 a share as of January to $48 a share trading range. A move by the company to expand its customer base appears to have strengthened investor confidence in the stock. GoDaddy has also started to earn more from each user, in contrast to the previous years.
The stocks sentiments on Wall Street received a major boost after the management team reiterated a strong product and marketing roadmap heading into the end of the year. The company’s newly unveiled mobile-optimized website builder Go Central has started to gain momentum, expected to generate substantial value going forward.
Institutional Holding
Regulatory filings indicate that JPMorgan Chase & Co owns 4.89 million shares In GoDaddy down from a holding of 6.81 million shares as of the end of January 2017. The holdings represent a 3.9% stake in the company’s common stock.
FMR LLC is another hedge fund with a holding of 10.57 million shares representing a stake of 11.55% in GoDaddy. Wellington Management Group owns 10.52 million shares representing an 11.49% stake.
Q3 Financial Results
GoDaddy has outperformed the overall industry this year after gaining more than 30% compared to the industry’s average growth of 25.7%. Impressive financial results continue to strengthen the stock’s sentiments on Wall Street.
For the three months ended September 30, 2017, GoDaddy generated revenues of $582.2 million representing 4.4% sequential increase and a 23.3% year-over-year increase. Revenues came slightly above management guidance of $577-$582 million. For the fourth quarter, the company expects revenue to range $591-$596 million against consensus estimates of $594.9 million.
GoDaddy generated a net income of $30 million in the third quarter, compared to a net income of $8.3 million reported last year.
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