Is Squarespace Stock A Buy After Its “IPO”?

Of course, that could be a source of friction as well, for voting stockholders who prefer to have input in a company's direction.

When it comes to profitability, however, opportunities to invest in a company with this much cash and stable growth can be rare.

This is still one of the foremost names in the web hosting market next to Wix.Com Ltd. (NASDAQ: WIX), GoDaddy Inc. (NASDAQ: GDDY), and WordPress. Its marketing has been so off-the-charts, it is easily one of the most recognizable names in the space.

And it continues to produce some of the most beautiful websites around for its ease-of-use.

The great thing about investing in this industry, as with much software, is that the market can be split in some unique ways. Fans of Squarespace will have different priorities than fans of Wix.

Wix users often want more flexibility in their designs, but the same visual potential. Squarespace users want a beautiful site in as little time as possible.

Wix has over 100 million sites. Squarespace has just over 3 million.

That gap will almost certainly close over the next few years when you think about how many more people are after convenience in their website building.

The expected valuation for Squarespace is about $10 billion, with lots of ceiling down the road. There will probably be a rush for Squarespace stock.

Shares of Wix are up 129% in the last year. It's valued at $16 billion and $988 million revenue. Since these companies are similarly valued, with similar growth prospects ahead, it gives us a hint to how Squarespace may perform after it goes public.

If the listing draws much hype, it could rise quickly. In a case where, say, Squarespace's value pops to $20 billion, you'll want to wait and see if you can get shares at a more affordable price.

If you can afford Squarespace stock before any hype bubble occurs, get in as soon as you can.

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