Squarespace is a website development and hosting service known for its user-friendly and innovative design templates. Investors have been very excited about the recent Squarespace Initial Public Offering on the stock market. With our tutorial, you’ll learn how to buy stocks and participate in Squarespace’s IPO.
Quick Squarespace History
Squarespace is a website design and hosting company headquartered in New York City, New York. It offers website creation and hosting tools as a service and enables consumers utilize pre-built website templates. This website designer allows you to customize your site and implement services that can help you improve your company. Squarespace is simple to use and understand, and the SEO tools are perfect for helping your content get noticed.
Squarespace was created in 2004 by Anthony Casalena as a blog hosting service. They had $1 million in annual sales by the time Casalena graduated in 2007. Its sales volume increased by 266 percent on average from 2009 to 2012. The company filed with the Securities and Exchange Commission (SEC) at the start of this year to go public via direct listing on the New York Stock Exchange (NYSE) under the symbol SQSP.
The Good and the Bad of Squarespace Stock
There are numerous potential benefits to owning stock in a company. Here are some of the pros and cons of being a Squarespace shareholder.
Pros of Owning Squarespace Stock
- Squarespace helps you to create a website without you having to learn how to code or find your own web host.
- The company’s innovative frameworks have made it much easier for those with little technological experience to expand their companies into the digital environment.
Cons of Owning Squarespace Stock
- Popular sites such as WordPress.com, Wix.com, and other automated website development companies compete directly with its services and investors need to be wary of this.
- Although the interface is effective, it is less user-friendly than its competitors. It’s may require some getting used to compare to its competition.
Outlook for Squarespace Stock
Squarespace has continued to increase revenue and brand awareness while competing in a fiercely competitive market. Squarespace’s sales increased by 28% from $484 million to $621 million in its most recent fiscal report. Profits dropped from $58 million to $30 million over the year.
Squarespace has over three million subscribers as of December 2020. From 2019 to 2020, operating cash flow increased by 47%. Squarespace is estimated to be valued at about $10 billion.
Steps to Buy Squarespace Stock
To purchase Squarespace stock, you must first open a brokerage account, then a trading account, deposit money, and then begin purchasing shares.
Step 1: Select a Brokerage
To buy Squarespace stock, you’ll need to find a broker that can link you to the New York Stock Exchange. When you select a broker and open an account with them, they will provide you with access to an online trading site. You will use this site to post transactions and exchange stocks at specific times and rates.
Step 2: Open Your Trading Account
After you’ve decided on the best brokerage for you, you’ll need to open an account with them. You will use this account to post transactions and exchange stocks at specific times and rates.
Step 3: Make a Deposit Into the Account
You’ll be able to deposit funds to buy Squarespace stock after you’ve attached an acceptable form of payment to your account. You will need to determine how many shares of Squarespace’s stock you want to purchase once your account is officially activated.
Step 4: Search for the Squarespace Ticker Symbol (SQSP)
On April 16, Squarespace filed an S-1 with the Securities and Exchange Commission. “SQSP” will be the Squarespace ticker symbol and it will be listed on the New York Stock Exchange.
Step 5: Purchase Squarespace Stock
At the bottom of each page, brokers will have a “deal ticket” where you can place your order. On the broker’s order form, you’ll insert the sign and the amount of shares you would like to buy.
Is Squarespace Stock a Good Buy?
Buying shares in an upcoming initial public offering (IPO) can be a great way to diversify your portfolio. Squarespace will have to continue its revenue growth and find ways to expand into different competitive markets in order for this stock to succeed.
It’s certainly uncommon to find an opportunity to invest in a business with this much cash and steady growth. If you would like to consult a professional to help you invest in stocks, feel free to reach out to a trusted financial advisor today.