VeriSign, Inc. (VRSN): Among the Best Forever Stocks to Buy Right Now

VeriSign, Inc. (VRSN) has been making waves in the tech industry, and for good reason. This multinational software infrastructure company provides domain name registry services and internet infrastructure, allowing users to navigate the internet using globally recognized domain names. But what sets VeriSign apart from the competition, and why should you consider adding it to your portfolio? Let's dive in.



First and foremost, VeriSign holds a monopoly on managing the.com and.net domain registrations, which are the most popular and widely used top-level domains (TLDs) globally. This dominant market position is protected by long-term contracts with ICANN (Internet Corporation for Assigned Names and Numbers), the organization responsible for managing the global domain name system. With virtually unassailable market share, VeriSign generates a stable and predictable revenue stream, making it an attractive choice for long-term investors.

But VeriSign's appeal doesn't stop at its market position. The company's business model is built on charging domain registrars (intermediaries between VeriSign and end-users) a fee for each domain registration and renewal. This recurring revenue stream ensures that VeriSign's income remains steady, even as the number of registered domain names continues to grow. As of 2024, there are approximately 1.62 billion.com and 1.35 million.net domain names registered, providing a substantial base for recurring revenue.

Moreover, VeriSign's contracts with ICANN allow for annual price adjustments, typically limited to a maximum of 7% per year. This mechanism ensures that VeriSign's revenue grows in line with inflation and allows the company to maintain its profitability even as costs increase. This price adjustment mechanism, coupled with VeriSign's strong brand recognition and diversified revenue streams, further solidifies the company's long-term growth potential.



VeriSign's key partnerships and strategic acquisitions have also played a crucial role in its future success. By collaborating with industry leaders like American Express, Checkpoint, Microsoft, and RSA, VeriSign can offer a broader range of security and trust services, increasing its value proposition and market appeal. Additionally, VeriSign's acquisition of Thawte and GeoTrust expanded its market share in the digital certificate industry, further strengthening its market leadership.

In conclusion, VeriSign, Inc. (VRSN) is a strong candidate for a "forever stock" due to its dominant market position, recurring revenue stream, price adjustment mechanism, strong brand recognition, and strategic partnerships. With a proven track record of consistent financial performance and a strong balance sheet, VeriSign is well-positioned to continue generating stable and growing revenue streams, even in the face of potential market fluctuations or technological changes. So, if you're looking for a tech stock that offers long-term growth potential and stability, VeriSign should be on your radar.