Is GoDaddy (GDDY) Still a Great Investment Pick?

Canterbury Tollgate, an investment management firm, published its third-quarter 2021 investor letter – a copy of which can be downloaded here. Like the rest of the market, the fund finished the third quarter on a rocky note. CTG Fluxion, LP ended the third quarter of 2021 down -2.72% for the quarter and up +8.83% YTD. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Canterbury Tollgate, in its Q3 2021 investor letter, mentioned GoDaddy Inc. (NYSE: GDDY) and discussed its stance on the firm. GoDaddy Inc. is a Tempe, Arizona-based web hosting company with a $12.0 billion market capitalization. GDDY delivered a -12.54% return since the beginning of the year, while its 12-month returns are down by -15.48%. The stock closed at $72.55 per share on December 13, 2021.

Here is what Canterbury Tollgate has to say about GoDaddy Inc. 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.”

Photo by Austin Distel on Unsplash

Based on our calculations, GoDaddy Inc. (NYSE: GDDY) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. GDDY was in 37 hedge fund portfolios at the end of the third quarter of 2021, compared to 39 funds in the previous quarter. GoDaddy Inc. (NYSE: GDDY) delivered a -2.24% return in the past 3 months.

Last month, we published an article about GDDY landing in the Top 3 Stocks to Buy According to Alexis Fortune’s Blacksheep Fund Management. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.