Instacart Shares Drop as IPO Excitement Fades Amid Economic Concerns and Changing Consumer Habits

Instacart shares fell 5% on Wednesday after initial IPO enthusiasm faded amid inflation/interest rate concerns
Instacart saw orders grow despite slowing from pandemic highs as people continue grocery delivery habits
Analysts cite concerns about consumers' willingness to pay delivery fees amid cost of living crisis
Potential challenges include attracting and retaining customers, especially older shoppers who prefer in-store
PepsiCo invested $175 million in Instacart ahead of IPO, giving Instacart ~$9.9 billion valuation

reuters.com

Relevant topic timeline:

9/11/2023

Instacart Goes Public at Lower $7.4 Billion Valuation Amid Slowing Growth and Stiff Competition

Instacart, the grocery delivery company, is aiming to price its stock between $26 and $28 per share, valuing the company at around $7.4 billion at the midpoint, as it prepares for an initial public offering (IPO) in a challenging online delivery market.

9/19/2023

Instacart Goes Public at $11B Valuation After Turning First Profit

Instacart begins trading at $42 per share, leading to a market valuation of over $11 billion, despite a significant drop from its previous valuation, as competition from Amazon and Walmart intensifies.

9/19/2023

Instacart Shares Pop 40% in $14B IPO, Testing Investor Appetite for Tech

Instacart's shares surged 40% in their Nasdaq debut, with a valuation of around $14 billion, marking the first significant venture-backed IPO in the U.S. since December 2021 and signaling a return in investors' risk appetite.

9/19/2023

Stocks On The Move: Starbucks Falls On China Worries, Instacart Pops After IPO, Disney Slumps On Spending Plans, Planet Fitness Slides After CEO Exit

Starbucks shares fall 2% after a downgrade, while Instacart's stock pops about 12.3% upon its debut on the public market.

9/20/2023

Stocks on the Move: Instacart Falls, Steelcase Soars After Earnings Beat, Klaviyo Jumps in IPO, Bausch Up on Upgrade, Stellantis Gains on Europe Sales

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.

9/20/2023

Instacart Stock Drops 13% After IPO As Competition Concerns Grow

Instacart's stock price is falling on its second day of trading as an analyst raises concerns about competitive pressures.

9/21/2023

Instacart Stock Slumps Below IPO Price as Investors Lose Enthusiasm for Recent Tech Debuts

Instacart's stock falls below its IPO price, reflecting investor disappointment with the grocery-delivery company and other recent tech stocks.

10/2/2023

Instacart Stock Struggles to Find Footing After IPO as Analysts Voice Concerns

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.