VeriSign operates a near-monopoly in .com and .net domain name registries with 50% net margins, a Rule of 40 score of 55, and a Piotroski F-Score of 8/9 — a genuinely rare combination of quality and regulatory moat — but the stock has already reached and passed its analyst price target, offering negative near-term upside at $272.96 versus a $273 target.
Thesis pillars
- Monopoly Margins Quality→Stable
- Product Concentration Regulatory Risk→Stable
- Technical Oversold Vs Rich Valuation→Stable
- +1 more pillar — see the Why tab for full reasoning
VeriSign, Inc. (VRSN) Stock Analysis
Temporary headwind edge
Technology · Software - Infrastructure
Sell if holding. At $256.43, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.4%; Concentration risk — Product: .com and .net gTLD registries.
VeriSign operates the authoritative registry for .com, .net, .name, and .cc top-level domains under agreements with ICANN and the U.S. Department of Commerce, processing hundreds of billions of DNS transactions daily. Revenue comes from annual domain name registration fees; .com... Read more
Sell if holding. At $256.43, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.4%; Concentration risk — Product: .com and .net gTLD registries. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.1/10, moderate confidence.
Passes 5/8 gates (clean insider activity, news events none recent, earnings proximity 20d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: moderate.
About VeriSign, Inc.
About VeriSign, Inc.
VeriSign operates two of the world's thirteen internet root servers and provides authoritative DNS resolution for .com and .net — the registries supporting the majority of global e-commerce — through more than 200 global points of presence. The company processes hundreds of billions of DNS transactions daily and had 928 employees at December 31, 2025. The current .com Registry Agreement, beginning October 26, 2024 and expiring November 30, 2030, permits price increases of up to 7% in each of its final four years.
VeriSign generates revenue through per-domain registration and renewal fees paid by ICANN-accredited registrars, who set retail prices for end users. For .com, VeriSign remits $0.2575 per annual registration to ICANN quarterly; for .net, $0.75 per annual registration; for .name, $0.25 per annual registration. The .net Registry Agreement permits annual price increases of up to 10%, while pricing for .cc and internationalized gTLDs is not subject to the same restrictions as .com and .net. VeriSign also earns fees for back-end technical services for the .edu domain and holds the Root Zone Maintainer role under an agreement with ICANN renewed October 20, 2024 through October 20, 2032. Domain registrations run one to ten years. With 928 employees averaging approximately 11 years of tenure and 93% based in the U.S. — with no U.S. collective bargaining agreements — the cost structure is concentrated in domestic salary and infrastructure.
Show full overview
VeriSign's business depends on two ICANN registry agreements: the .com Registry Agreement (renewal deadline November 30, 2030) and the .net Registry Agreement (renewal deadline July 1, 2029), both carrying presumptive renewal rights that ICANN could deny if VeriSign fails to cure a fundamental and material breach. The Cooperative Agreement with the U.S. Department of Commerce — most recently amended October 26, 2018 and automatically renewed November 30, 2024 — constrains pricing changes and requires content-neutral operation of the .com gTLD. In China, the Ministry of Industry and Information Technology requires separate government-issued licenses for .com, .net, and .cc, and new regulations are already affecting domain registration demand, exposing the company to jurisdictional compliance risk if those licenses are not obtained or renewed.
See also: Technology · Software - Infrastructure
From VeriSign, Inc.'s most recent 10-K filing, extracted June 16, 2026.
Recent developments
updated 2026-07-06Recent Developments — VeriSign, Inc.
Latest news
- NEWS Mirae Asset Global Investments Co. Ltd. Sells 10,449 Shares of VeriSign, Inc. $VRSN - MarketBeat — MarketBeat neutral
- NEWS VeriSign (NASDAQ:VRSN) CEO Sells $904,926.00 in Stock - MarketBeat — MarketBeat negative
- NEWS Is VeriSign Inc (VRSN) a Bargain After 3.3% Drop? GF Value Says Undervalued - GuruFocus — GuruFocus positive
- NEWS Verisign CEO sells 3,300 shares in open market | VRSN Insider Trading - Stock Titan — Stock Titan neutral
- NEWS VeriSign Inc. stock underperforms Wednesday when compared to competitors - MarketWatch — MarketWatch negative
Generated 2026-07-06T04:40:27Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHProduct.com and .net gTLD registries10-K Item 1A: 'Substantially all of our revenues are derived from our operation of the .com gTLD... as well as our operation of the .net gTLD under our .net Registry Agreement.'
Material Events(8-K, last 90d)
- 2026-05-21Item 5.02LOWStockholders approved Amendment and Restatement of 2006 Equity Incentive Plan at May 21, 2026 Annual Meeting, extending plan termination to May 21, 2036 with technical and administrative revisions. No officer departure or new officer appointment.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers
Momentum below the gate floor. Component breakdown shows what dragged the score down.static
Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. At $256.43, A.R:R 0.5:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Thin upside margin: 3.4%; Concentration risk — Product: .com and .net gTLD registries. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $239.93. Score 5.1/10, moderate confidence.
Take-profit target: $265.20 (+3.4% upside). Prior stop was $239.93. Stop-loss: $239.93.
Concentration risk — Product: .com and .net gTLD registries; Thin upside margin: 3.4%; Expensive valuation.
VeriSign, Inc. trades at a P/E of 28.3 (forward 24.5). TrendMatrix value score: 3.5/10. Verdict: Sell.
11 analysts cover VRSN with a consensus score of 3.9/5. Average price target: $312.
What does VeriSign, Inc. do?VeriSign operates the authoritative registry for .com, .net, .name, and .cc top-level domains under agreements with...
VeriSign operates the authoritative registry for .com, .net, .name, and .cc top-level domains under agreements with ICANN and the U.S. Department of Commerce, processing hundreds of billions of DNS transactions daily. Revenue comes from annual domain name registration fees; .com prices may increase up to 7% in each of the final four years of a six-year term, expiring November 30, 2030. The company had 928 employees at December 31, 2025.