What Happened:
Shares of website and ecommerce tools provider Squarespace (NYSE:SQSP) jumped 5.21% in the pre-market session after analyst Ygal Arounian of Citi upgraded the stock's rating from Neutral (Hold) to Buy and raised the price target from $30 to $40. The price target suggests a potential upside of about 30% from the current level. After the initial pop the shares cooled down to $31.60, up 2.97% from previous close.
What is the market telling us:
Squarespace's shares are a little volatile and over the last year have had 44 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.
Squarespace is up 38.5% since the beginning of the year, and at $31.60 per share it is trading close to its 52-week high of $32.74 from April 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 $723.02.
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