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Is VRSN a good stock to buy? We came across a bullish thesis on VeriSign, Inc. on The Finance Corner’s Substack by Kostadin Ristovski, ACCA. In this article, we will summarize the bulls’ thesis on VRSN. VeriSign, Inc.'s share was trading at $275.81 as of April 20th. VRSN’s trailing and forward P/E were 31.31 and 29.41 respectively according to Yahoo Finance.

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VeriSign, Inc., together with its subsidiaries, provides internet infrastructure and domain name registry services that enables internet navigation for various recognized domain names worldwide. VRSN represents a rare legal monopoly at the core of the internet’s infrastructure, serving as the authoritative registry for .com and .net top-level domains (TLDs). While consumers interact with registrars such as GoDaddy or Wix, these platforms merely act as resellers, purchasing domains wholesale from VeriSign and adding their own markup.

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This structure positions VeriSign as the invisible toll collector of the digital economy, earning a fixed fee—currently $10.26 per .com domain—regardless of the point of sale, supported by relationships with over 3,000 ICANN-accredited registrars. Its control over these critical TLDs stems from its 2000 acquisition of Network Solutions and is reinforced by longաժամ-standing contracts with ICANN, including a 2024 agreement that allows price increases of up to 7% in four out of six years, creating a clear and predictable revenue growth lever.

The company’s financial model is exceptionally resilient and scalable, driven by a combination of pricing power and a steadily growing domain base, which now exceeds 170 million registrations. Despite modest fluctuations, including a temporary post-pandemic decline, domain growth has resumed, supported by stable renewal rates of approximately 73% and favorable long-term trends in digital presence and entrepreneurship. This dynamic, combined with minimal operational complexity and limited need for reinvestment, has enabled VeriSign to grow revenue by 45% over the past decade while reducing headcount, highlighting strong operating leverage.

As a result, VeriSign has achieved industry-leading profitability, with operating margins expanding to 68%, up from 60% in 2017. With built-in pricing escalators, a mission-critical role in global internet infrastructure, and a highly predictable, cash-generative business model, VeriSign stands out as a uniquely durable and compelling long-term investment.

Previously, we covered a bullish thesis on Cloudflare, Inc. (NET) by Oliver | MMMT Wealth in April 2025, which highlighted the company’s strong network effects, 20%+ growth outlook, and approaching profitability inflection as it scales internet infrastructure. NET’s stock price has appreciated by approximately 91.75% since our coverage. Kostadin Ristovski, ACCA shares a similar view but emphasizes on VeriSign’s legal monopoly, predictable pricing power, and superior margins within internet infrastructure.

VeriSign, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 54 hedge fund portfolios held VRSN at the end of the fourth quarter which was 44 in the previous quarter. While we acknowledge the risk and potential of VRSN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VRSN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.