Berkshire Hathaway Boosts Stake in VeriSign, Analysts Predict Strong Growth
Warren Buffett’s Berkshire Hathaway has increased its investment in VeriSign, solidifying the domain registry company as its largest internet stock holding. This move comes as Citi analysts designate VeriSign as a “top pick” for 2025, setting a price target of $238 and forecasting significant growth potential.
Berkshire Hathaway now holds a $2.7 billion stake in VeriSign, representing nearly 14% ownership and making it the company’s largest shareholder. This substantial investment underscores confidence in VeriSign’s critical role in providing internet infrastructure and domain registration services.
Founded in 1995, VeriSign has established itself as the exclusive registry for .com and .net domains and operates two of the 13 global internet root servers. The company’s utility-like nature allows for regular price increases and maintains strong EBITDA margins, contributing to its attractive market position.
Citi analysts are bullish on VeriSign’s prospects, predicting a solid performance in 2025. Their price target of $238 represents a 16% upside from current levels. In a more optimistic scenario, they estimate the stock could reach $312, offering over a 50% potential gain.
VeriSign’s financial strength is evident in its profitability, boasting a profit margin of approximately 56%, which ties it with Nvidia as one of the most profitable companies in the S&P 500.
Despite a challenging year where VeriSign’s stock only gained 2% compared to the S&P 500’s 23% increase, analysts remain confident in its long-term potential. The stock currently trades at a price-to-earnings ratio of about 24x, aligning with its 15-year historical average.
Citi highlights VeriSign’s potential to return to mid- to high-single-digit top-line growth, making it an attractive investment opportunity at current levels. As the internet continues to expand and evolve, VeriSign’s crucial role in domain registry and internet infrastructure positions it well for future growth.
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