Godaddy Signal 09/12: Will The Correction Continue? (Chart)

(MENAFN- Daily Forex) Short Trade Idea

Enter your short position between $126.62 (yesterday's intra-day low) and $128.47 (yesterday's intra-day high).Market Index Analysis

• GoDaddy (GDDY) is a member of the S&P 500.
• This index trades in a bearish chart pattern with rising bearish trading volumes.
• The Bull Bear Power Indicator of the S&P 500 is bullish with a negative divergence and does not support the recent uptrend.

Market Sentiment Analysis

Equity markets closed lower yesterday after a positive start. Equity futures remain mixed this morning as NVIDIA moved higher in after-hours trading after President Trump approved the company's sale of its H200 AI chips to approved customers in China, in return for 25% of the sales value. Investors may exercise caution today ahead of tomorrow's FOMC announcement, where a 25-basis-point interest rate cut remains priced in, but the outlook could still inject volatility. AI and retail earnings could move price action, with earnings from Oracle, Broadcom, Costco, and Lululemon on deck Fundamental Analysis

GoDaddy is the world's fifth-largest web hosting company with over 20M+ customers. It focuses on micro and small companies.

So, why am I bearish on GDDY at current levels?

While GoDaddy makes headlines with its agentic AI push and the addition of six agents to its Airo product aimed at small businesses, it is a desperate attempt to remain relevant. I am bearish until GDDY can turn the hype into EPS growth, as I remain concerned by its 50%+ plunge in this category. I am equally alarmed by its trailing three-year average return on invested capital, which is roughly a third of the industry average.

GoDaddy Fundamental Analysis Snapshot

The price-to-earnings (P/E) ratio of 21.95 makes GDDY an expensive stock in its sector but inexpensive relative to the S&P 500. By comparison, the P/E ratio for the S&P 500 is 29.21.

The average analyst price target for GDDY is $175.20. this suggests excellent upside potential, but downside risks dominate Technical Analysis

Today's GDDY Signal

GoDaddy Price Chart

• The GDDY D1 chart shows price action inside a bearish price channel.
• It also shows price action between its descending 0.0% and 38.2% Fibonacci Retracement Fan levels.
• The Bull Bear Power Indicator turned bearish with a descending trendline.
• The average bearish trading volumes are higher than the average bullish trading volumes since the recent intra-day low.
• GDDY corrected as the S&P 500 advanced, a significant bearish trading signal.

My Call on GoDaddy

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money

I am taking a short position in GDDY between $126.62 and $128.47. I remain bearish amid its alarming price-to-book ratio, low current ratio, and rising infrastructure costs associated with its agentic AI endeavors.

• GDDY Entry Level: Between $126.62 and $128.47
• GDDY Take Profit: Between $99.90 and $107.62
• GDDY Stop Loss: Between $135.71 and $139.92
• Risk/Reward Ratio: 2.94

Ready to trade our analysis of GoDaddy? Here is our list of the best stock brokers worth reviewing.

MENAFN09122025000131011023ID1110459715