Diamond Hill Capital released its third-quarter 2025 investor letter, reporting US stocks gained over 8%, with small-cap stocks leading the way at over 12%. The strategy underperformed the Russell Midcap Index, returning 4.49% net. Top five holdings can be found in the letter.

In the investor letter, Diamond Hill highlighted GoDaddy Inc. (NYSE:GDDY), a cloud-based product developer. GoDaddy’s stock closed at $126.08 per share on December 30, 2025, with a market cap of $17.456 billion.

Regarding GoDaddy Inc. (NYSE:GDDY), Diamond Hill mentioned that the stock declined in the quarter due to slowing sales and a contracting customer base. Investors are evaluating the potential impact of AI on GoDaddy’s business in the future.

Although GoDaddy Inc. (NYSE:GDDY) saw a revenue increase of 10% in Q3 2025, hedge funds reduced their holdings in the company. While GoDaddy has potential, other AI stocks may offer greater upside and less downside risk. Check out the best short-term AI stock for more information.

Read more at Yahoo Finance: GoDaddy (GDDY) Fell Due to Weakening Sales