5 Tech Stocks to Buy According to Select Equity Group

In this article, we discuss 5 tech stocks to buy according to Select Equity Group. If you want our detailed analysis of these stocks, go directly to 10 Tech Stocks to Buy According to Select Equity Group. 

5. GoDaddy Inc. (NYSE:GDDY)

Select Equity Group’s Stake Value: $707,706,000

Percentage of Select Equity Group’s 13F Portfolio: 2.37%

Number of Hedge Fund Holders: 37

Select Equity Group owns 10.1 million GoDaddy Inc. (NYSE:GDDY) shares in the third quarter, worth $707.70 million, representing 2.37% of the fund’s 13F portfolio. GoDaddy Inc. (NYSE:GDDY) is an Arizona-based internet domain registrar and web hosting company, with more than 20 million customers worldwide. 

GoDaddy Inc. (NYSE:GDDY) announced on November 12 that it had purchased Pagely, which is a company offering a Managed WordPress Hosting Platform and cloud expertise. GoDaddy Inc. (NYSE:GDDY) plans to create a top-notch WooCommerce SaaS platform that enables high levels of reliability, flexibility, and performance. 

On November 3, GoDaddy Inc. (NYSE:GDDY) announced its Q3 earnings, posting an EPS of $0.84, beating estimates by $0.17. Revenue for the quarter increased 14.16% year-over-year, reaching $964 million, outperforming estimates by $18.12 million. 

Truist analyst Naved Khan kept his Buy rating and a $112 price target on GoDaddy Inc. (NYSE:GDDY), saying the activist involvement by Starboard Value is an “incremental positive for the stock”. 

Tim Hurd and Ed Magnus’ BlueSpruce Investments is one of the leading GoDaddy Inc. (NYSE:GDDY) stakeholders from Q3 2021, with 6.72 million shares worth $468.4 million. Overall, 37 hedge funds were long GoDaddy Inc. (NYSE:GDDY), with stakes amounting to $2.29 billion. 

Here is what Canterbury Tollgate has to say about GoDaddy Inc. (NYSE:GDDY) in its Q3 2021 investor letter:

“GoDaddy (GDDY) in particular sold off after reporting quarterly earnings in early August. Yet they are still growing the top line by more than 10 percent per annum. Short term pain creates opportunity. Presently GDDY trades at a greater than 5.5 percent trailing FCF yield, and a 7.2 percent 2021 yield based on my own (lower than consensus) estimation. Deferred revenue continues to improve. CEO Aman Bhutani and team have done an excellent job rebranding the company. I’m confident they will continue to address challenges along the way and keep GoDaddy on the right path.”