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Arm and Instacart Seek Billions in IPOs, But Market Doubts Mute Splashy Debuts

  • Arm seeking $52B valuation in upcoming IPO, while Instacart also plans multi-billion dollar debut, but experts don't expect splashy launches to revive muted IPO market

  • Wharton academic compares current landscape to post dot-com bubble years when IPOs stalled after initial boom

  • Arm and Instacart outliers relative to other companies considering IPOs in down market

  • Investors hesitant on growth stories without steady profits amid higher rates, while VCs have limited exit opportunities

  • IPO rebound unlikely until investors excited again on riskier bets and founders accept lower valuations in tougher landscape

businessinsider.com
Relevant topic timeline:
Main topic: The optimistic outlook for the tech industry and potential for IPOs. Key points: 1. The discovery of room-temperature superconductors could have a significant impact on the economy, but experts are still skeptical. 2. The macroeconomic climate is improving, leading to relief in tech valuations. 3. The venture capital market is showing signs of recovery, with an increase in mega-rounds and a slowdown in tech layoffs. 4. If market conditions continue to improve, a new wave of IPOs could be on the horizon. 5. The Nasdaq's performance suggests that the software IPO window may be opening up. 6. However, the timing of when founders will be able to go public is uncertain, with predictions ranging from the second half of 2024 for SaaS IPOs.
SoftBank-owned Arm has filed for its initial public offering (IPO), which will be a major test for the IPO market that has been stagnant due to rising interest rates, and is a significant move for SoftBank as it pivots its focus to artificial intelligence. Arm's chip designs are found in almost all smartphones globally, and the company's listing has implications for SoftBank's rebound strategy.
Main topic: The reawakening of the tech IPO market and its impact on heavily-funded startups. Key points: 1. Arm Holdings and Instacart's IPOs will test investor appetite for tech IPOs and potentially rejuvenate the stagnant market. 2. The bar is higher now for startups planning to go public, with investors seeking profitable companies. 3. The market has been challenging for recent IPOs, with many billion-dollar listings currently valued below $1 billion. Note: The provided content contains more than three key points.
The tech IPO market may be reawakening after a two-year lull, with Arm Holdings and Instacart expected to go public and test investor appetite for technology IPOs, although the bar for startups has become higher since 2021, leading to fewer IPOs and a need for companies to show profitability within six quarters of listing.
Despite a record-breaking year for IPOs in 2021, the pace of new listings has slowed in 2022 and 2023 due to factors such as volatile markets and uncertainty over interest rates, but there is hope for a resurgence in 2024 if certain conditions are met.
Instacart, the grocery delivery service, plans to go public in an initial public offering (IPO) after revealing that it has managed to turn a profit unlike other gig economy companies, although the growth of its core grocery delivery business is slowing.
British semiconductor designer Arm Holdings is planning a multibillion-dollar initial public offering (IPO) on the Nasdaq Stock Exchange in the US, aiming to raise between $8 billion and $10 billion with a valuation of $60 billion to $70 billion, positioning itself as one of the biggest IPOs of 2023.
Arm Holdings is preparing for a highly anticipated IPO, but its pricing indicates that it will not reach Nvidia's level, despite being the largest IPO of the year.
SoftBank's desired valuation for Arm's IPO may be too high, as investors are focused on medium-term operating profit rather than just revenue, and Arm would need to achieve implausible levels of growth and profitability to justify the target valuation.
Instacart, an online grocery delivery service, is planning to go public in a slow IPO market, but an analyst from Gordon Haskett expresses concerns.
Goldman Sachs CEO David Solomon predicts that a wave of tech IPOs, including those of Arm and Instacart, could revive the muted capital markets and lead to an increase in activity in the coming months.
U.S. investors are eagerly anticipating several upcoming IPOs in the coming months, including Arm Holdings, Instacart, Klaviyo, and VNG, as they hope to capitalize on the recent rally in equity markets.
Instacart aims for a valuation of up to $9.3 billion in its upcoming IPO, a significant decrease from its previous funding round, with cornerstone investors agreeing to buy up to $400 million worth of shares.
Instacart and Arm have both set lower valuations for their upcoming IPOs, reflecting investor caution as the market for IPOs remains challenging.
Retail investors should be cautious when buying shares of Arm Holdings' upcoming IPO, as recent data shows that individual investors tend to lose money on blockbuster IPOs, with the 10 biggest US IPOs in the past four years down an average of 47% from their first-day closing price.
Four upcoming IPOs, including Arm, Birkenstock, Instacart, and Klaviyo, have generated hope for the struggling IPO market, but experts believe that it is not indicative of a strong resurgence in the market and predict that it will take until 2024 or 2025 for the market to fully rebound.
The recent surge in IPOs, including the listing of Arm, reflects growing market confidence and economic optimism.
Grocery delivery company Instacart raises IPO price target after successful debut of chip designer Arm Holdings.
Arm shares soared nearly 25% on its first day of trading on the Nasdaq, boosting U.S. stocks and sparking hope that the IPO market for tech companies is reviving. Additionally, positive economic data from China and a rebound in retail sales and industrial production contributed to market optimism.
The Arm IPO and tech stocks have surged in value, making them expensive, and investors may want to consider investing in an ETF to capture the potential gains.
Arm Holdings shares are dropping after a successful IPO, and there are concerns that the stock could fall further.
Instacart is set to debut its IPO on Tuesday, raising questions about whether its stock will soar or plummet.
Instacart prices its IPO at $30 a share, indicating strong investor interest in new offerings.
Instacart's successful IPO debut as Maplebear doesn't ensure its future strength, especially considering its "low float" which poses additional risks for investors.
Goldman Sachs predicts a revival in the IPO market, but warns investors to be cautious as not all IPOs will perform well; the key factors to identify successful IPOs are strong sales growth and profitability.
Instacart's stock falls below its IPO price, reflecting investor disappointment with the grocery-delivery company and other recent tech stocks.
Wall Street's reaction to recent tech IPOs, including Instacart, Arm, and Klaviyo, has been underwhelming, with investors who bought at the IPO price making money only if they sold immediately, raising concerns about valuations.
The recent poor performance of tech IPOs, including Arm Holdings, Instacart, and Klaviyo, has raised doubts about the market's readiness for high-stakes IPOs amidst economic uncertainty and geopolitical tensions.
Instacart's IPO marks a significant moment for the tech industry and its employees, attracting attention from other late-stage tech firms as a gauge for the openness of the IPO market.
ARM Holdings' lackluster performance following its IPO debut raises questions about the company and the IPO market, as investors may be rotating out of high-risk assets and dampening the prospects for new listings.
Instacart stock is facing challenges and falling below its IPO price due to concerns raised by Wall Street analysts about the company's future prospects.
The global market for initial public offerings (IPOs) is showing signs of recovery after an 18-month slump, with emerging markets accounting for a significant share of the money raised and number of IPOs, driven by economic growth and increased interest from investors in local and regional companies; however, major IPO markets such as the US, Europe, and the UK have struggled this year due to factors such as high interest rates, regulatory restrictions, and reduced investor appetite for risky bets.
Despite a challenging market backdrop in the third quarter, the equity capital markets saw robust activity with several successful IPOs and a significant increase in sponsor monetization offerings, signaling positive momentum for future market activity.