Instacart Plans to Go Public in a Slow IPO Market. Why an Analyst Is Concerned.
Instacart, an online grocery delivery service, is planning to go public in a slow IPO market, but an analyst from Gordon Haskett expresses concerns.
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Posted 9/5/2023, 5:49:00 PM
barrons.com
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Instacart, the grocery delivery company, has filed for an IPO, reporting profitable quarters and revenue of $716 million, with plans to create an omnichannel experience merging online and in-store shopping.
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.
Arm and Instacart's upcoming IPOs are not expected to revive the muted market, as startup and financial experts compare the current landscape to the years following the dot-com bubble and anticipate a challenging market for IPOs.
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 is set to debut its IPO on Tuesday, raising questions about whether its stock will soar or plummet.
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's stock falls below its IPO price, reflecting investor disappointment with the grocery-delivery company and other recent tech stocks.