Prayers for GDDY investors as it was among the worst performers
13 Dec, 201813 min read
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GDDY has destroyed investor wealth today. On a longer term basis, investors in GODADDY INC. made -0.08% per day. Thursday's performance of -2.45% was a underperformance compared to it's daily average.
Buy-and-Hold investors in GDDY experienced a maximum drawdown of -28.95% over the last three months. It delivered -21.84% during this strong bearish trending period. There were both Long and Short signals during this period, where the short signals were significantly more profitable than the long signals. The net profit from Short signals was +19.06%.
GDDY has been underperforming the SP500 index in recent time. It showed significant outperformance (compared to the SP500 index) from 3 Aug, 2016 to 13 Sep, 2018. Over the last 2 years 11 months and 9 days, GDDY outperformed the SP500 index on 55% days.
During the last three months GDDY was mostly loss making and delivered on average -0.35% per day. It's best return during this period (of +7.13%) was on Wednesday, 28 Nov, 2018. While it's worst loss in the same period (of -8.3%) was on Wednesday, 7 Nov, 2018. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +3.68%) started on 24 Sep, 2018 and went on till 28 Sep, 2018 while the bearish trend (which returned -14.47%) started on 4 Oct, 2018 and went on till 10 Oct, 2018.
The last 12 months saw GDDY's investors making profits in 8 months and incurring losses in 4 months. During the last year, GDDY and SP500 index had the same number of profitable months. GDDY significantly outperformed SP500 index in Jan 2018, when it returned +12.55% compared to +4.75% returned by SP500 index during it's best month in the last one year - Jan 2018. GDDY had a shorter streak of profitable months than SP500 index. It only went up in 5 straight months during the last year. It is interesting to note that both GDDY and SP500 index significantly outperform during months when quarterly/annual results are announced.
"Infinite growth of material consumption in a finite world is an impossibility.
GDDY is currently seeing overall fall in volatility. In comparison, the SP500 index is seeing increase in volatility. During the last three months, there was a significant surge in GDDY's volatility from 28 Sep, 2018 to 20 Nov, 2018. While there was a significant surge in the SP500 index's volatility from 25 Sep, 2018 to 29 Oct, 2018.
Advanced/professional short-term investors should note that GDDY has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.
SP500 index has more chance of extreme outcomes than GDDY. Therefore, SP500 must receive a lower allocation than GDDY in your portfolio. SP500 index usually has shorter drawdown period than GDDY.
On a general note (since you are interested in GDDY), ZBRA is a small cap that deserves to be closely tracked for investment opportunities.
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