Why Is Squarespace (SQSP) Stock Rocketing Higher Today
What Happened:
Shares of website and ecommerce tools provider Squarespace (NYSE:SQSP)
jumped 5% in the morning session after UBS initiated coverage on the stock and assigned a Buy rating with a price target of $40. The target price indicates a potential 40% upside from where shares were traded when the rating was announced. After the initial pop the shares cooled down to $28.75, up 4.58% from previous close.
Is now the time to buy Squarespace? Find out by reading the original article on StockStory.
What is the market telling us:
Squarespace’s shares are not very volatile than the market average and over the last year have had only 17 moves greater than 5%. In context of that, today’s move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago, when the stock gained 8.1% on the news that the company delivered an impressive “beat and raise” quarter, with Q1 results exceeding analysts’ revenue and earnings per share estimates. However, free cash flow and gross margin missed. Despite this, revenue guidance for the next quarter came in above Consensus, and the company lifted the full-year revenue outlook. Overall, it was a strong quarter for the company despite e-commerce companies reporting mixed earnings thus far.
Squarespace is up 26.2% since the beginning of the year, but at $28.75 per share it is still trading 13.8% below its 52-week high of $33.36 from July 2023. Investors who bought $1,000 worth of Squarespace’s shares at the IPO in May 2021 would now be looking at an investment worth $658.65.
