Instacart, the popular grocery delivery platform, made its debut on the Nasdaq stock market last night, trading under the symbol CART. The stock opened with a 12% increase from its IPO price of $30, reaching $33.70 per share. Throughout the day, the stock reached a high of $42, marking a 40% increase. Currently, the company has a market capitalization of $11 billion, significantly lower than its pre-COVID value of $39 billion.
In the past quarter, Instacart experienced a 15% increase in revenue compared to the previous year, amounting to $716 million. The company also achieved a net profit of $114 million. Instacart’s positive performance since Q2 2022 can be attributed to the substantial revenue growth during the COVID-19 pandemic, coupled with cost-cutting measures, including layoffs in the preceding year.
Instacart’s entrance into the stock market is notable due to its status as a major American startup that has attracted venture capital investments. The successful listing comes as many companies have hesitated to go public due to volatile market conditions.
Established in 2012, Instacart initially operated as a grocery delivery service, partnering with major supermarkets like Kroger, Costco, and Wegmans. It now faces competition from other food delivery platforms such as DoorDash and Uber Eats, as well as retail giants like Amazon, Target, and Walmart that offer similar services.
TLDR: Instacart, the renowned grocery delivery platform, went public on Nasdaq as CART. The stock closed the first day of trading at $33.70, a 12% increase from its IPO price. Despite a decrease in market value compared to pre-COVID levels, Instacart reported a 15% revenue rise in the past quarter and achieved a net profit of $114 million. The company’s entry into the stock market is significant given its status as a major American startup, and ongoing competition with other food delivery services and retail giants.