Five takeaways from Instacart’s S-1 filing
Instacart, the on-demand grocery delivery giant, has finally filed for its highly anticipated IPO, revealing impressive revenue growth and profitability in recent years.
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Posted 8/25/2023, 7:34:43 PM
techcrunch.com
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Instacart's IPO filing reveals the company's profitability in 2022, driven by increased productivity through batching orders, although gig workers have reported doing more work for the same pay.
Grocery delivery startup Instacart, data and marketing automation company Klaviyo, and chip designer Arm have filed for stock market debuts, representing a test of the excitement level among public market investors for new opportunities and potentially encouraging other companies to go public in the fourth quarter.
The American venture market has been experiencing a significant decline in technology IPOs, but the recent filings of public-offering paperwork by Instacart and Klaviyo stand out as important milestones in a market that has seen a lack of startup exits for over 1.5 years.
Instacart, an online grocery delivery service, is planning to go public in a slow IPO market, but an analyst from Gordon Haskett expresses concerns.
Instacart is aiming to go public at a valuation between $8.6 billion and $9.3 billion, marking a significant change from its previous valuation, as it looks to reignite the IPO market.
Instacart and Arm have both set lower valuations for their upcoming IPOs, reflecting investor caution as the market for IPOs remains challenging.
U.S. stocks remained stable as investors anticipated the outcome of the Federal Reserve's September meeting, while the pan-European Stoxx 600 index fell due to various negative factors including the departure of Lonza's CEO and Societe Generale's cost-cutting plans; in other news, Instacart priced its IPO at $30 per share, valuing the company at around $10 billion, and strikes in the U.S. have caused the highest number of lost labor hours in decades.
The IPO market shows signs of revival with the success of Instacart and Arm IPOs, indicating that investors still have an appetite for stocks.
Instacart's successful IPO debut as Maplebear doesn't ensure its future strength, especially considering its "low float" which poses additional risks for investors.
Instacart shares fall after going public, Steelcase soars on strong earnings, Klaviyo jumps after IPO, Bausch Health surges on upgraded rating, Stellantis sees sales growth in Europe, Pinterest rallies on revenue growth expectations, Coty raises full-year outlook, Zebra Technologies downgraded, Textron signs deal with NetJets, Chewy downgraded on pet category weakness, and various other companies see stock movements.
Instacart's stock falls below its IPO price, reflecting investor disappointment with the grocery-delivery company and other recent tech stocks.