The internet domain registration company, GoDaddy, has reportedly filed to place $100 Million worth of it’s company open to the public. This does not come to surprise, this internet tech company has been making some pretty good gains and returns in the last view quarters. According to America’s Market, GoDaddy made $320.2 Million in the first quarter, a 22% increase from 2013.
[America’s Market Excerpt via Matt Krantz ]
–“It’s a well-known company. It’s branded. But at this stage they should be making money,” says Francis Gaskins, director of research at Equities.com. “If they can’t make money now, when will they be making money and what will be different?”
GoDaddy’s IPO, widely anticipated since last year, makes the company latest Internet darling to take advantage of the open window for new stock offerings. Over the past year, there have been 117 initial public offerings, Renaissance says. That’s up 52% from the same period last year.
Technology stocks have been a big driver of the activity. There have been 32 technology IPOs this year so far, making the industry second only to health care in terms of the number of deals.
GoDaddy is hoping to jump aboard what’s been strong interest in Internet deals so it can raise money to pay down debt, Gaskins says. The company is carrying more than $1 billion in long-term debt as of the end of the first quarter.
But investors are also increasingly skeptical of shares from newly public companies, especially when the companies are losing money. The Renaissance IPO ETF, which tracks shares of recent IPOs, is up just 0.4% this year, trailing the 6.5% gain by the Standard & Poor’s 500.
GoDaddy is hoping name recognition and revenue growth will allow it to glide past increasingly skeptical IPO investors, Gaskins says.”
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