GoDaddy (NYSE:GDDY) is Now Public: Initial IPO Up 30%

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godaddy logoGoDaddy (NYSE:GDDY) opened its IPO at $460 million. The company’s starting price was $20 a share, but has since skyrocketed on Wednesday. Trading under the symbol of “GDDY,” the company’s stock is up 30% and is priced at $26 a share.

Investors beware, GoDaddy is an elevated risk. While the initial offering has seen the company’s stock prices soar, GoDaddy has not generated a profit since 2009. This is a major concern despite the company being initially valued at $3 billion.

Last year, the company posted a loss of $143 million. Over the past 3 years, GoDaddy has seen losses of $622 million.

Despite the company’s losses, free cash flow has increased to $181 million, up 18%. This is a sign that the company is at least trying to increase profits.

GoDaddy was sold in 2011 for $2.25 billion dollars.

The company is an interesting buy for investors. Being founded in 1997 under the Jomax Technologies name, many investors expect a company of this age to have already sorted out much of their financial issues. Even with revenue of $1.4 billion last year, the company still lost $143 million. Restructuring and alleviating bad debts is expected as the company moves forward.

GoDaddy currently has 12.7 million customers.

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