Competitors also get bump as GoDaddy soars.
GoDaddy went public yesterday and shares immediately shot up 30%, giving the company a $4 billion market cap. In very early trading today it’s up another 3%.
There are a number of similar public companies out there. I think the two closest comps are Endurance International (which owns Domain.com and a number of shared hosting companies) and Web.com.
Endurance International Group (EIGI) shares were up about 4% yesterday, giving the company a $2.6 billion market cap.
Like GoDaddy, EIGI carries a lot of debt. But the reason for the debt load is different. GoDaddy has debt because of the 2011 buyout; Endurance was a debt-powered rollup.
Web.com (WWWW) was up about 3% yesterday and has a market cap of just shy of $1.0 billion. The company owns Network Solutions and Register.com.
Shares of three other domain name companies were essentially flat yesterday: Rightside (NAME), Tucows (TCX) and Verisign (VRSN). None of these comps are as similar to GoDaddy as EIGI and WWWW.