Is Squarespace Stock A Buy After Its “IPO”?

Squarespace filed for a direct listing last week. That's a quick way around listing shares on a public exchange without a drawn-out IPO process.

That means we will soon be able to trade Squarespace stock on brokerage apps like Robinhood or Stash.

The famous website building and hosting provider released its S-1 filing on April 16. The Squarespace ticker symbol will be "SQSP."

Despite operating in an immensely competitive industry, Squarespace has managed growing profitability and name recognition.

To see how this will hold up, let's look at the future of Squarespace stock and when to buy it.

What Is Squarespace?

You've probably heard the term "software as a service," also called SaaS, before. Any company that offers a subscription service to software falls under this umbrella.

Squarespace offers a particular software service called "web hosting."

In order to run, every website needs to be "hosted" somewhere on the web via servers owned by companies like Squarespace, GoDaddy, or BlueHost.

There are a ton of online hosting options for people and businesses looking to make their own websites. When you choose a hosting service, you choose the company that you pay to claim a "domain name," like MoneyMorning.com. This is usually a monthly or yearly fee.

Sometimes, the hosting service is paired with a web design service, making sort of an all-in-one toolkit to get a website up and running.

In other cases, a website builder might partner with other hosting companies, and they would direct customers to each other.

Squarespace, GoDaddy, Wix, and WordPress are all examples of companies that offer various design tools and hosting options for websites. Of course, they all have their pros and cons.

Squarespace stands out for its ability to make your website look visually stunning without any professional help. It offers more options than WordPress, for example, because the pre-made templates are more customizable, for significantly cheaper than WordPress.

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Disclaimer: Any performance results described herein are not based on actual trading of securities but are instead based on a hypothetical trading account which entered and exited the suggested ...

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