Why GoDaddy Shares Rose 19% in August
Shares of GoDaddy (NYSE: GDDY) gained 19.1% in August 2020, according to data from S&P Global Market Intelligence. The gains started with a strong earnings report and continued when Facebook (NASDAQ: FB) said that GoDaddy's e-commerce tools soon will be integrated into Instagram's online shopping platform.
The domain-name manager and provider of various online business tools saw shares rising as much as 15% on August 6, boosted by a solid earnings report. Sales increased 9% year over year, and earnings would have been positive if not for a one-time tax charge of $850 million. This settlement of tax receivables is expected to lower the company's tax payments by more than $1 billion over the next 8 years.
A smaller jump followed on August 25 when Instagram presented a list of platform partners for its fledgling e-commerce operations. There are two active partners so far, and the smaller one of these saw share prices surge 25% higher on the news. GoDaddy was listed among the upcoming integration partners, and that set off a 4% gain over the next three days.
Source Fool.com
