GoDaddy faces decline as AI shifts web hosting; Q1 results disappoint, stock down 50% in a year

GoDaddy Inc. is experiencing a structural decline due to AI-driven changes in web hosting and weakening bookings growth. Its Q1 results were underwhelming, contributing to a roughly 25% stock drop since January and about 50% over the past year. The rise of AI-powered website creation has become a key competitive factor, but GoDaddy's Airo product has failed to stop its loss of market share. Analysts maintain a Sell rating, citing GoDaddy's commoditized position and lack of a clear recovery strategy in the evolving AI landscape.