GoDaddy (GDDY), an internet domain registrar and web hosting company, has reached a settlement with the U.S. Federal Trade Commission (FTC) concerning past security incidents. Under the settlement, GoDaddy has agreed to implement enhanced security requirements, many of which are already in place, to bolster its data protection practices.
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FTC Highlights GoDaddy’s Security Failures
The FTC complaint pointed out several security lapses at GoDaddy, including poor management of security events. It accused the company of failing to separate secure and non-secure hosting spaces, while misleading customers with claims of robust security measures.
Emphasizing the importance of reliable web hosting, Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, highlighted the critical role companies like GoDaddy play in safeguarding small businesses and their customers.
In response, GoDaddy stated that it is working hard to protect customer data and websites. The company said that it has already begun implementing the changes required by the FTC and plans to invest further in technology to enhance its security measures.
GDDY Expects Minimal Financial Impact on its Operations
The company expects minimal financial impact from complying with the settlement terms. GDDY highlighted that it will continue investing in security improvements beyond the FTC’s requirements, ensuring the safety and integrity of its services for small businesses and consumers alike.
What Is the Price Target for GDDY?
Turning to Wall Street, GDDY has a Moderate Buy consensus rating based on seven Buys and three Holds, assigned in the last three months. At $218.57, the average GoDaddy price target implies a 9.74% upside potential. Shares of the company have gained over 90% over the past year.
