GoDaddy (NYSE:GDDY) shares are on the rise (up 4% intra-day today) following a letter from activist investor Starboard Value, which indicated the presence of a significant opportunity for value creation within the company.

Starboard, currently the third largest shareholder in GoDaddy with around 7.8% of the outstanding common stock, expressed its disappointment in GoDaddy's operational, financial, and stock performance over the past 18 months.

GoDaddy had previously held an Investor Day in early 2022 where it outlined its financial goals for 2022 through 2024. However, Starboard believed that there was room for improvement beyond those targets. While some initial progress was made in 2023, GoDaddy, according to Starboard, has since fallen behind on nearly every metric it presented at the Investor Day.

They also emphasized that the board should maintain a receptive attitude toward exploring other possibilities for enhancing value. This could encompass strategies to achieve greater profit margins and execute cost-cutting measures. Additionally, Starboard mentioned the possibility of considering a potential sale of the company.