What Happened?

On February 24, 2026, GoDaddy released its fourth quarter 2025 financial results, revealing, among other things, bookings of $1.28 million. The Company disclosed it had “introduced a promotional price for .com domains with a 1-year term” but “the shift in term mix, combined with the promotional price, reduced up front bookings and near-term revenue.”

Additionally, the Company provided 2026 guidance, including revenue of $5.195 billion to $5.275 billion, and stated that it “anticipate[s] a modest impact on reported revenue growth rates for the year in both Core Platform and A&C segments as the promotional price is allocated to all products included in the initial purchase.”

On this news, GoDaddy’s stock price fell $13.18 or 14.28%, to close at $79.12 per share on February 25, 2026, thereby injuring investors.

What Is The Lawsuit About?

The complaint filed in this class action alleges that between September 3, 2025 and February 24, 2026, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (i) the Company’s strategy of focusing on high-intent customers was not working;  (ii) Company had implemented a promotional discount for dotcom domains that were likely to and did result in shorter term contracts with smaller valuations; (iii) the Company’s institution of a promotional discount on one- year dotcom contracts with shorter terms was already having a material, negative impact on total bookings growth for the fourth quarter of 2025, and in turn the full year 2025; (iv) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.