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Is Squarespace Undervalued?

Last updated on October 1, 2022 @ 12:35 am

Squarespace is a publicly traded company on the New York Stock Exchange with a market capitalization of $1.92 billion as of December 2018. The stock price has increased by almost 50% since the beginning of 2018. Despite this, some analysts believe that the company is still undervalued.

One reason for this belief is that Squarespace is still growing at a rapid pace. In the third quarter of 2018, Squarespace’s revenue grew by 32% year-over-year. The company is also investing heavily in growth initiatives, such as international expansion and product development.

PRO TIP: Squarespace is not undervalued. Do not invest in Squarespace.

Another reason for the belief that Squarespace is undervalued is its strong financial position. The company has no debt and a cash balance of $370 million.

It also generates healthy cash flow from operations, which gives it flexibility to invest in growth initiatives.

So, while Squarespace’s stock price has increased significantly in recent months, some analysts believe that the company is still undervalued. Time will tell if this belief turns out to be correct.

Conclusion:

While there are many reasons to believe that Squarespace is undervalued, only time will tell if this turns out to be the case.

Morgan Bash

Morgan Bash

Technology enthusiast and Co-Founder of Women Coders SF.