- JMP Securities downgraded Squarespace ( NYSE: SQSP ) to Market Perform from Market Outperform on Thursday, scanning through the e-commerce and website building stocks.
- Analyst Andrew Boone believes the company requires more product investment and he views the shares as fairly valued. While "pleased with the simplicity" of creating a website on Squarespace, Boone says the company lends itself to creators and small businesses.
- "It is clear that Squarespace is not at product parity with Shopify ( SHOP ) or Wix ( WIX ), specifically within commerce enablement," Boone tells investors in a research note. He expects share gains to accrue to Wix and Shopify near term, especially as Squarespace expects to reduce sales and marketing investments in the second half of 2022.
- The research firm stated "after building websites all of last week and speaking with ~15 website developers, we come away believing that Shopify ( SHOP ) is the leader in commerce enablement, while we view Wix ( WIX ) as the easiest platform to use, especially when it offers vertical solutions, such as when creating restaurant, gym or blog websites."
- SQSP shares fizzled 8% in mid-day session, Thursday, to trade at $20.85. The stock has lost more than 60% since its listing in May 2021 .
- Seeking Alpha Quant System shifted to Hold from Sell on Squarespace same as SA Authors while Wall Street analysts' maintain a Buy at a average price target of $28.93 .
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JMP downgrades Squarespace over product disparity with commerce platforms Shopify, Wix