Robbins LLP is Investigating Allegations that GoDaddy Inc. Failed to Disclose to Investors That it had Initiated an Undisclosed Promotional Discount that had a Material, Adverse Effect on Total Bookings Growth

Robbins LLP informs investors that a class action was filed on behalf of all persons and entities who purchased or otherwise acquired GoDaddy Inc. (NYSE: GDDY) common stock between September 3, 2025 and February 24, 2026 (the "Class Period"). GoDaddy is an internet domain registry, domain registrar, and web hosting company headquartered in Tempe, Arizona.

The complaint alleges that GoDaddy failed to disclose to investors that it had initiated a promotional discount that had a material, adverse effect on total bookings growth. 

Investors who suffered significant losses during the Class Period may be eligible to participate in the lawsuit and should contact Robbins LLP for information.

Why Was GoDaddy Sued?

According to the complaint, during the Class Period, GoDaddy introduced an undisclosed heavily discounted promotional price for one-year domain contracts of $4.99, a price significantly lower than their typical multi-year contracts which range from $10 to $20 per year.

Plaintiff contends this was a deliberate strategy to attract new customers, even at the expense of large upfront payments for multi-year contracts.  Accordingly, this undisclosed promotion contradicted the Company’s repeated representations that its strategy to attract high-intent customers that spend $500 or more was working and that its AI platform was “hitting its stride,” helping to attract those high-intent customers that were adopting more products and spending more money.

Why Did GoDaddy's Stock Drop?

On February 24, 2026, GoDaddy issued a press release reporting its fourth quarter and full year 2025 financial results with the SEC on Form 8-K revealing that total bookings growth had sharply decelerated to 5% in the fourth quarter of 2025. While revenue growth hit the mark at 8% for the full year 2025, this sharp deceleration in total bookings growth in the fourth quarter of 2025 caused total bookings growth for the full year 2025 to come in at 7%, a departure from defendants’ previously stated 8%.

During GoDaddy's earnings call, defendants clarified that it had introduced a promotional price for dotcom domains with a one-year term, which "increased new customer volume that purchased domain units with one-year terms, but the demand for the offer was greater than we expected and the shift in term mix combined with the promotional price reduced upfront bookings and near-term revenue."

On this news, the price of GoDaddy common stock fell from a closing price of $92.30 per share on February 24, 2026, to a closing price of $79.12 per share on February 25, 2026, a decline of $13.18 per share, or more than 14%.

Who Can Participate in the GoDaddy Class Action?

The lawsuit seeks to represent investors who purchased or otherwise acquired GoDaddy common stock between September 3, 2025 and February 24, 2026.

Investors who suffered losses during that period may have legal rights under the federal securities laws.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.