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GoDaddy, Inc. (NYSE: GDDY) has become one of the leading internet domain registration and web hosting companies globally. If you had invested $1,000 in GoDaddy stock five years ago, you might wonder what kind of return on investment you would have seen over that period of time.
According to historical data, in October 2018, GoDaddy’s stock price was trading around $82. As of October 2023, shares were trading approximately at $74, reflecting a mild decline in the overall stock value over the five-year period. A $1,000 investment five years ago at $82 per share would have purchased roughly 12.2 shares. Today, those 12.2 shares are worth about $903, given the current price of $74. This reflects a slight loss in your initial investment, and when compared to major tech companies like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT), which have significantly beaten the market over the same time frame, GoDaddy has lagged behind.
This slower growth rate stands in contrast to more robust tech stocks that have seen tremendous growth, thanks to stronger revenue streams and key innovations in areas like cloud computing and AI technologies. Companies like Microsoft and Apple have provided investors better long-term returns over the last five years, highlighting the risks of being heavily focused on a specific tech niche like domain services and web hosting. Meanwhile, broader technology stocks have benefited significantly from macro trends, like the surge in demand for cloud solutions and personal devices during the pandemic.
While GoDaddy has maintained its operational business strength, its stock price hasn’t fully reflected robust growth due to industry-specific challenges and a competitive market. Improving or diversifying its product offerings could give the stock more momentum, but for the last five years, investors would have seen a mildly negative return on their original $1,000 investment. If you’re looking into whether or not you should invest in GoDaddy or tech stocks, it’s essential to evaluate potential market trends and the company’s direction before making any final decisions. However, investors searching for bigger returns would likely have fared better investing in more diversified tech giants during the same period.
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