Rosen Law Firm has launched an investigation into GoDaddy Inc. over potential securities law violations. The probe follows a 14% stock decline on February 25, 2026, after the company disclosed that a promotional domain pricing strategy reduced near-term revenue. Kaplan Fox & Kilsheimer LLP has also opened a separate investigation into the company.
Rosen Law Firm announced an investigation into GoDaddy Inc. over potential securities law violations, after the web hosting company's stock lost 14% in a single day following a domain pricing disclosure that reduced near-term revenue.
"GoDaddy may have issued materially misleading business information to the investing public," the firm said in a statement Thursday.
The investigation centers on GoDaddy's fourth-quarter 2025 earnings report released Feb. 24, after markets closed. During the earnings call, the company disclosed it had introduced a promotional price for one-year dotcom domain registrations in the fourth quarter. Chief Financial Officer Mark McCaffrey said demand for the offer exceeded expectations, and "the shift in term mix combined with the promotional price reduced upfront bookings and near-term revenue." The company also anticipated a "modest impact on reported revenue growth rates for the year."
GoDaddy shares fell $13.18, or 14.3%, to close at $79.12 on Feb. 25, the first trading day after the disclosure. The stock has yet to recover to pre-disclosure levels.
Kaplan Fox & Kilsheimer LLP has opened a separate investigation into the company, focusing on the same disclosure. The law firm is seeking investors who suffered losses to come forward.
The investigations add legal uncertainty to GoDaddy's outlook as the company navigates the revenue impact of its pricing strategy. Investors will watch for any formal class action filing and the company's next quarterly report for further details on domain revenue trends.
This article is for informational purposes only and does not constitute investment advice.
