GoDaddy (GDDY) Drops 1.70% on Institutional Selloff, Bearish Trend

GoDaddy Inc. (GDDY) shares fell 1.70% today, marking the fourth consecutive day of decline, with a total drop of 6.01% over the past four days. The stock price hit its lowest level since April 2025, experiencing an intraday decline of 2.12%.

The impact of a new low on GDDY stock price movements over the next week, month, and three months was generally positive, with prices bouncing back strongly from the low point. This suggests investor confidence and market dynamics favoring a swift recovery:

One Week After the Low: The stock price of GDDY experienced a significant bounce, recovering about 75% of the distance to the previous high point within the first week. This rapid rebound indicates strong buying pressure, likely from investors who view the dip as a buying opportunity.

One Month After the Low: By the end of the first month, the stock price had nearly fully recovered, reaching its previous high point. This steady upward trend reflects sustained investor confidence and a return to the stock's previous trajectory.

Three Months After the Low: Over the three-month period, the stock price continued to perform well, although at a slightly lower rate than the immediate aftermath of the low. This indicates that while the initial shock had worn off, the stock maintained a positive momentum, supported by ongoing investor interest and market stability.

In conclusion, reaching a new low point for GDDY stock typically leads to a strong recovery over the short to medium term, with prices often bouncing back significantly within weeks to months. This behavior is indicative of a market that tends to view such dips as opportunities for investment, leading to swift and robust price recoveries.

One of the key factors influencing GoDaddy's stock price is the recent reduction in stake by LBP AM SA. The institutional investor decreased its holdings in GoDaddy by 3.4% during the first quarter. Such moves by major investors can signal a lack of confidence in the company's future prospects, leading to a negative impact on the stock price.

Technical analysis also plays a significant role in the current market sentiment. As of July 9, 2025, GoDaddy's overall moving average trend is bearish, with four negative signals. This technical indicator suggests a downward trend in the stock price, contributing to a negative evaluation of the stock among traders and analysts.

Additionally, the stock has exhibited average daily volatility of 1.89% over the last week. High volatility, coupled with a negative evaluation and recommendations against using stop-loss strategies, can further erode investor confidence. This uncertainty can lead to decreased demand for the stock, resulting in lower prices.