Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.

How to trade Squarespace’s IPO

Squarespace is an American website builder and hosting company that is headquartered in New York City. It is a software as a service (SAAS) based hosting platform that allows small businesses, particularly within the e-commerce sector, to create their own websites using existing templates. After raising various rounds of venture capital over the past several years, the company is planning a direct listing on the New York Stock Exchange. Find out how you can get involved in Squarespace’s IPO and start trading on newly-listed Squarespace stock on our Next Generation trading platform.

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Is Squarespace publicly traded?

Squarespace is not yet publicly traded but the company is planning on offering its shares to the public on 19 May 2021. This will be through a direct listing rather than a traditional initial public offering (IPO) process.

In a direct listing, no fresh capital is raised in advance and Squarespace’s share price will be determined by orders coming into the stock exchange. This also eliminates any restrictions from the lockup period in an IPO. Companies often settle for a direct listing if they do not need to raise any more capital, and it can also save on other costs such as banking and marketing fees. Other companies that recently opted for a direct listing include Coinbase, Palantir and Roblox.

Why trade on Squarespace stock with CMC Markets?

  • We’re No.1 for customer service*
  • Trade anywhere with our award-winning platform and app
  • Over 30 years’ industry experience
  • We’re listed on the London Stock Exchange

Squarespace IPO date

Squarespace’s IPO date is set for 19 May 2021. The company will list on the New York Stock Exchange under the ticker symbol ‘SQSP’, after filing for a listing with the SEC in January. Remember that Squarespace’s IPO will take place under different stock market hours to the UK, so this will be in the afternoon when the NYSE is open.

What is the value of Squarespace stock?

Although no share price has yet been released for Squarespace, the company has registered approximately 40m shares for its listing. In March 2021, it raised $300m from investors including Tiger Global, Fidelity Investments and D1 Capital Partners. According to this previous valuation in March, Squarespace could have an estimated market capitalisation of over $10bn.

How to trade on Squarespace’s IPO

  1. Register for a live account. Choose your product between spread betting, which is tax-free in the UK**, and contracts for difference (CFD trading), which are globally available.
  2. Choose whether you want to open a long position and ‘buy’ or a short position and ‘sell’. Please note that some trading restrictions may apply on initial trading.
  3. Apply risk-management tools. Stop-loss orders in particular are used by many share traders in order to avoid making a loss on your open positions.
  4. Read about the share market. Stay up to date with news and analysis articles and equity reports for breaking announcements about Squarespace’s IPO.
  5. Browse our product library for additional assets. You can trade on over 8,500 shares, including Squarespace competitors such as Wix and Shopify.

Squarespace financials pre-IPO

Squarespace has made substantial profits since 2004, the year that it was founded. By the time university student and CEO Anthony Casalena graduated in 2007, it was making annual revenues of $1m, despite him being the sole employee of the company.

In Squarespace’s end of year report for 2020, the company reported a revenue increase of almost 30% to $621.1m in comparison with the previous year. Between 2018 and 2019, Squarespace’s market share increased from 0.7% to 1.5%, which is a year-on-year growth of 114%. Due to the Covid-19 pandemic, Casalena reported a surge of new customers and start-up businesses that requested the company’s services.

Squarespace has raised capital through funding multiple times, in 2010, 2014, 2017 and 2021. In 2017, the business was valued at $1.7bn, compared to four years later, where it is now valued at approximately $10bn, showing how quickly the company has grown in a short period of time. It has also acquired a number of tech start-ups in the US, including hospitality-based platform Tock and social media app Unfold.

Risks of trading Squarespace’s IPO

Squarespace is a company within a very competitive market, which means that when it debuts on the NYSE, it will be up against its rival companies. Although it is a rapidly growing company, it still only represents a tiny percentage of the software and technology industries. Below are some Squarespace alternatives that offer similar services. Some are available to trade on our online trading platform, so register for an account to take advantage.

However, it is worth noting that Squarespace’s largest competitor, WordPress, is not yet publicly traded. Its parent company, Automattic, remains private and has announced that it has no intention to debut on the stock market any time soon. Therefore, Squarespace may still be an attractive investment for those looking for growth stocks or alternatives to larger and more established companies.

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Where can I read about Squarespace news?

Our platform comes with an abundance of news resources. Firstly, our expert market analysts release daily articles on the share market, including IPO announcements and newly listed companies. We also have in-depth insight tools, such as Morningstar equity research reports and a live Reuters news feed. These features are only accessible with a live account, so sign up to CMC Markets to access our range of platform tools.

Read more about our news and insights section.

FAQ

When will Squarespace go public?

Squarespace is planning to go public on the stock market on 19 May 2021. Keep an eye out for Squarespace shares on our online trading platform, Next Generation. These will show in the product library upon listing.

Who are the advisors for Squarespace’s IPO?

Squarespace is reportedly working with major US-based investment banks such as Goldman Sachs and JP Morgan Chase. As it is a direct listing, there are no underwriters, in comparison with a traditional IPO.

How can I participate in Squarespace’s IPO?

With CMC Markets, traders can participate in Squarespace’s IPO via derivative trading products, such as spread bets and CFDs. These allow you to trade on underlying price movements of the newly listed share. Learn the differences between spread bets and CFDs.

Is Squarespace planning a direct listing?

Squarespace is planning a direct listing on the New York Stock Exchange, rather than a traditional initial public offering (IPO). This follows in the steps of other major listings in 2021, such as the Coinbase IPO. Major technology companies such as Slack and Spotify also completed direct listings in previous years.

Where will Squarespace stock be listed?

Squarespace stock will be listed on the New York Stock Exchange (NYSE), which is the largest exchange in the world by market capitalisation. Learn about UK stock market hours when trading on overseas exchanges.

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**Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.