Internet Infrastructure: Investor Positioning and Focuses for VRSN, WIX, and GDDY

研报英文原文证据摘录

Internet Infrastructure: Investor Positioning and Focuses for VRSN, WIX, and GDDY

Alexei Gogolev AC North America Equity Research

(1-212) 622-9391 18 June 2026 J P M O R G A N

alexei.gogolev@jpmorgan.com

market. Read our recent expert checks here. We lowered our 2026E FCF estimate to ~

$417M (broadly in line with management’s new guide and having reflected RIF-related

savings. We now expect modest FCF margin expansion to low 20%s in 2027E. With

today’s note, we are introducing a Dec-27 price target of $62/sh (down 28% from Dec-26

PT as we incorporate higher company-specific risk for the stock through higher WACC

on AI disruption concerns).

• GDDY: Remain Overweight, lower PT to $124/sh. For GDDY, at the upcoming 2Q26E

print, investors will focus on bookings growth - whether or not it will reach or exceed

revenue growth for the quarter as well as FY26E guide. We remind investors that last

quarter management suggested that 1Q26 reflected the peak negative impact from several

headwinds, such as promo-related bookings impact, Dotco registry contract expiration,

and tougher compares (especially aftermarket). Management adjusted the promo

strategy after very strong gross adds over-indexed towards 1-year customers.

Simultaneously, Airo (AI solution) distribution remains limited; paid marketing started

in May 2026, and management expects a more visible revenue tailwind from the offering

in 2027E. GDDY strategy continues to prioritize high-intent customers (activation and

attach) over raw customer growth, with buybacks the default capital lever and limited

M&A appetite. With today’s note, we are introducing a Dec-27 price target of $124/sh

(down 19% from Dec-26 PT as we incorporate higher company-specific risk for the stock

through higher WACC on AI disruption concerns).