Three Delivery Service Stocks to Monitor as the Industry Faces Challenges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
0mins
Should l Buy GDDY?
Source: NASDAQ.COM
Industry Overview: The Zacks Internet - Delivery Services industry includes companies providing various online services such as food delivery, travel booking, and web hosting, with many facing challenges in profitability due to high R&D and marketing costs.
Growth Drivers: Increased smartphone usage and internet penetration are driving growth in the industry, while shifting consumer preferences towards online services and technological innovations enhance customer experiences.
Economic Risks: The industry faces potential risks from tariff wars affecting small businesses and advertising spending, alongside higher upfront costs for expansion that could impact profitability amid intense competition from major tech companies.
Performance and Outlook: The industry has underperformed compared to the S&P 500 and the broader tech sector, with a Zacks Industry Rank indicating poor near-term prospects and a negative earnings outlook for constituent companies.
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Analyst Views on GDDY
Wall Street analysts forecast GDDY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GDDY is 166.38 USD with a low forecast of 85.00 USD and a high forecast of 240.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
8 Buy
8 Hold
0 Sell
Moderate Buy
Current: 96.150
Low
85.00
Averages
166.38
High
240.00
Current: 96.150
Low
85.00
Averages
166.38
High
240.00
About GDDY
GoDaddy Inc. is engaged in serving a market of entrepreneurs, developing and delivering easy-to-use products in a one-stop shop solution alongside personalized guidance. The Company serves small businesses, individuals, organizations, developers, designers and domain investors. The Company's segments include Applications and Commerce (A&C) and Core Platform (Core). The A&C segment primarily consists of sales of products containing proprietary software, notably its Website building products, as well as its commerce products and third-party email and productivity solutions and sales of certain products when they are included in bundled offerings of its proprietary software products. The Core segment primarily consists of sales of domain registrations and renewals, aftermarket domain sales, Website hosting products and Website security products when not included in bundled offerings of its proprietary software products, as well as sales of products not containing a software component.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Competitive Landscape: IonQ faces fierce competition from companies like Rigetti Computing, which boasts a 99.6% fidelity in its 36-qubit system but operates at speeds 1,000 times faster than IonQ, highlighting the intensifying race between speed and accuracy.
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Market Reactions: January has presented various challenges and opportunities for investors, prompting significant analysis and reflection on market trends.
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- Put Option Yield: The current bid for the $105.00 put option is $3.70, and if an investor sells this contract, they commit to buying the stock at $105.00, effectively lowering their cost basis to $101.30, which represents about a 1% discount compared to the current price of $105.83, making it attractive for those interested in GDDY shares.
- Expiration Risk Analysis: This put option has a 56% chance of expiring worthless, in which case the premium would yield a 3.52% return on cash commitment, equating to an annualized return of 29.91%, highlighting the potential appeal of this investment strategy.
- Call Option Returns: The $110.00 call option has a current bid of $2.30, and if an investor buys GDDY shares at $105.83 and sells this contract, they could achieve a total return of 6.11% if the stock is called away at expiration, showcasing the profit potential of this strategy.
- Risk-Reward Trade-off: Given that the $110.00 strike price represents a 4% premium over the current stock price and has a 57% chance of expiring worthless, investors could retain both their shares and the premium collected, further enhancing their annualized return to 18.45%.
See More
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- Market Reaction: The current market conditions may lead to strategic investments in undervalued tech companies.
See More
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- Market Leadership Shaken: Major software companies like Intuit, ServiceNow, GoDaddy, AppLovin, and Adobe have become the worst performers in the S&P 500 this year, reflecting investor concerns that AI advancements may disrupt the enterprise software market.
- Pricing Model Risks: The rise of AI agents threatens traditional 'per-seat' subscription models, potentially undermining predictable revenue streams for software companies and diminishing investor confidence in these stocks.
- Cost Decline Expectations: Analysts predict that as coding costs approach zero, barriers to deploying enterprise software will be lowered, allowing AI to better understand context and driving the adoption of software solutions.
- Investor Sentiment Volatility: Despite the current sell-off in software stocks, analysts believe this trend may be short-lived, as further AI integration and revenue acceleration by software companies could improve market sentiment.
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