GODADDY WAY OVERVALUED - RIPE FOR SHORTING - BUY PUT OPTIONS

Godaddy is way overvalued. Using DCF valuation, I can only get a value of $17.50 for GDDY. GDDY has just announced its quarterly earnings, another loss of -0.07 per share. Its sales are growing at 13% per year but it is failing to convert it to positive earnings. I think this stock is going to tank big time. In overnight trading, it dropped to $70 but bounced up again on very low volume. There are a lot of competitors in the website publishing space, GDDY has a large share of the market but its dominance could get eroded from here further supporting a much lower value per share. I think this is a 6 month put option play. Buy at the money put options with 6 month expiry. I think this strategy could be a big winner. Also, Trump is increasing tariffs on China again, the market could tank with GDDY falling hard from here on.

The technicals look bearish too. The RSI, ROC and MACD are all looking bearish supporting a down movement.