Investing News

In this article

Spencer Platt | Getty Images

Activist investor Starboard Value has taken a 6.5% stake in GoDaddy, sparking a rally in shares of the web services company.

The hedge fund bought more than 10,000 shares of GoDaddy, worth about $800 million, according to a regulatory filing. The new stake became the biggest holding for Starboard.

Shares of GoDaddy jumped more than 9% on the news Monday.

Loading chart…

The stock is flat on the year even as the company experienced a surge in online traffic amid the Covid-19 pandemic.

The Wall Street Journal first reported Starboard’s stake.

Starboard Value and GoDaddy did not immediately respond to CNBC’s requests for comment.

Starboard Value CEO Jeff Smith has been a prolific activist investor even during the pandemic as he pushed for changes in companies across the veterinary, chemicals and health-care industries.

Starboard Value manages about $6.2 billion in assets, according to filings through the first quarter of 2020. Smith spun the New York-based hedge fund out of investment firm Ramius in 2011.

— CNBC’s Jesse Pound contributed reporting.

Articles You May Like

Stocks making the biggest moves midday: Walmart, Citigroup, Paramount and more
Stocks making the biggest moves midday: Deere, Foot Locker, Palo Alto Networks and more
Which FAANG Stock Is Poised to Deliver Better Returns?
Investors Waiting For the “Buy” Signal in Snowflake Stock
Citigroup shares jump 7% after Warren Buffett reveals a near $3 billion stake in the struggling bank