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☆ Instacart IPO banks tout e-grocery shopping potential, but challenges loom
▼ + stars: | 2023-10-16 | by ( Savyata Mishra | ) www.reuters.com time to read: +2 min

REUTERS/Cheney Orr/File Photo Acquire Licensing RightsOct 16 (Reuters) - Most Wall Street brokerages, including J.P.Morgan and Goldman Sachs, kicked off coverage on Instacart (CART.O) with a bullish view, betting on the grocery delivery app's growth amid a shift to online shopping. The stock — following a lukewarm debut in September — closed at $25.57 on Friday, below its $30 initial public offering (IPO) price. At least half of Instacart's 20 IPO underwriters have initiated coverage with their top ratings after the quiet period ended. Instacart's slow growth compared to rivals is a top concern, as a reduction in food stamp benefits and a shift back to in-store shopping could limit GTV growth, according to Piper Sandler analyst Alexander Potter. As of Friday, the six brokerages that were not involved in the IPO started coverage with an average rating of "hold", LSEG data showed.

Persons: Eric Cohn, Cheney Orr, Goldman Sachs, —, Baird, Colin Sebastian, Scott Devitt, Justin Post, Piper Sandler, Alexander Potter, Savyata Mishra, Shilpi Majumdar Organizations: Safeway, REUTERS, J.P.Morgan, underwriters, Walmart, Wedbush, BofA Global Research, Thomson Locations: Tucson , Arizona, U.S, Instacart, Bengaluru

☆ Instacart shares fall further below IPO price
▼ + stars: | 2023-09-27 | by ( Noel Randewich | ) www.reuters.com time to read: +2 min

Shares of Instacart, formally called Maplebear, last traded at $28.71 compared to the $30 price set in its IPO on Sept. 18. SoftBank-backed chip designer Arm Holdings fell 2.5% to $52.19, just above the $51 price in its IPO two weeks ago. After closing with a gain of 12% in its first session, Instacart has steadily lost ground. Arm's shares have also mostly declined after surging in their Wall Street debut, touching intra-day lows below $51 in three of the past five sessions. The marketing automation firm's stock remains above its $30 IPO price, but well below its intraday high of $37 in its first day of trading.

Persons: Eric Cohn, Cheney Orr, Instacart, Noel Randewich, Emelia Sithole Organizations: Safeway, REUTERS, Vanda Research, Arm Holdings, Thomson Locations: Tucson , Arizona, U.S, Klaviyo

☆ Instacart stock subdued as debut enthusiasm loses steam
▼ + stars: | 2023-09-20 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Cheney Orr/File Photo Acquire Licensing RightsSept 20 (Reuters) - Grocery delivery app Instacart's stock (CART.O) fell nearly 5% in premarket trading on Wednesday, on course to join other new stock market entrants in failing to keep up with their strong gains on debut. Shares of San Francisco-based Instacart ended 12% higher in their Nasdaq debut on Tuesday, failing to hold onto an intraday gain of as much as 43%. The company's initial public offering on Monday had given it a valuation of nearly $9.9 billion. In August, it announced interest from PepsiCo (PEP.O), which has agreed to buy $175 million in preferred convertible stock. Reporting by Savyata Mishra and Niket Nishant in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

Persons: Eric Cohn, Cheney Orr, Instacart, Alex Frederick, Frederick, Instacart's, Andrew Lipsman, Savyata Mishra, Niket, Devika Organizations: Safeway, REUTERS, Investors, San, Nasdaq, Walmart, Amazon, PitchBook, PepsiCo, Insider Intelligence, Thomson Locations: Tucson , Arizona, U.S, San Francisco, Bengaluru

The IPO gave Instacart a valuation of nearly $9.9 billion, a fraction of the $39 billion it was worth in 2021, the company's last funding round. Reuters GraphicsSeveral startups' valuations have shrunk since 2022 as inflation, geopolitical tensions and the Federal Reserve's rapid rate hikes soured the economic climate. But a lukewarm reception to Neumora Therapeutics' (NMRA.O) IPO last week hinted at limited investor enthusiasm for new listings. Arm soared on its first day of trading but has dropped every day since then. Goldman Sachs and J.P. Morgan are the lead underwriters for Instacart's IPO.

Persons: Eric Cohn, Cheney Orr, Hogan, Riley, Instacart, Apoorva Mehta, Fidji Simo, Goldman Sachs, J.P, Morgan, Niket, Noel Randewich, Devika Syamnath, Anil D'Silva, Nick Zieminski, Richard Chang Organizations: Safeway, REUTERS, Nasdaq, SoftBank's Arm, San, Maplebear Inc, Reuters, Federal, Investors, Neumora Therapeutics, Instacart's, Thomson Locations: Tucson , Arizona, U.S, San Francisco, Bengaluru, Oakland , California

Instacart also sells ad space on its site, including to Pepsi and Kellogg's, which want to promote products online. Instacart, valued at $9.3 billion, said its grocery orders remained flat for the first six months of 2023 at 132.9 million compared to the year-ago period, Securities and Exchange Commission filings showed. Gross transaction value rose 4% to $14.94 billion over the same period, while ad revenue grew 24% to $406 million from $327 million. Gross profit grew faster than gross transaction value for products sold on Instacart, including merchandise, taxes and fees. Some advertisers may not be as worried about Instacart's slowed order growth, said Nikhil Raj, retail media business lead at ad solutions firm Moloco.

Persons: Eric Cohn, Cheney Orr, Instacart, Fidji Simo, Andrew Lipsman, there's, Lipsman, Gross, Instacart's, Nikhil Raj, Raj, Arriana McLymore, Richard Chang Organizations: Safeway, REUTERS, Pepsi, Securities, Exchange, Insider Intelligence, SEC, Thomson Locations: Tucson , Arizona, U.S, San Francisco, New York

☆ Instacart to target valuation of up to $9.3 billion in IPO, source says
▼ + stars: | 2023-09-10 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Cheney Orr Acquire Licensing RightsSept 10 (Reuters) - Grocery delivery service Instacart is targeting a valuation between $8.6 billion and $9.3 billion in its initial public offering, according to a person familiar with the matter. The valuation range will be disclosed in an updated IPO regulatory filing on Monday, the source said on SundayInstacart declined to comment. The Wall Street Journal was the first to report on Sunday on Instacart's IPO valuation target. Unlike an IPO, no shares are sold in advance in a direct listing and investors can sell their shares directly to the public. For the six months ended June 30, Instacart last month reported revenue of $1.48 billion, up 31% from the same period last year.

Persons: Eric Cohn, Cheney Orr, Instacart, Andreessen Horowitz, Rowe Price, Anirudh Saligrama, Manya Saini, Niket, Echo Wang, Cynthia Osterman, Leslie Adler Organizations: Safeway, REUTERS, Arm Holdings Ltd, Reuters, Sequoia Capital, Fidelity Management & Research, Thomson Locations: Tucson , Arizona, U.S, Bengaluru, Echo, New York

☆ Instacart’s mixed bag has valuation opportunities
▼ + stars: | 2023-08-28 | by ( Anita Ramaswamy | ) www.reuters.com time to read: +4 min

If it doesn’t push valuation too hard, a public listing could be seamless. Instacart booked net income in 2022, a rarity for a growth company hitting the public market. That brings Instacart’s enterprise value to roughly $17 billion, less than half of what it was worth in 2021 but still higher than the internal valuation it inked last year. Follow @AnitaRamaswamy on XCONTEXT NEWSGrocery-delivery business Instacart filed paperwork to go public on Aug. 25 under the formal name Maplebear. The company, which did not share its target price range in the filing, grew revenue by 39% in 2022 to $2.6 billion.

Persons: Eric Cohn, Cheney Orr, Fidji Simo, Instacart, Simo, Apoorva Mehta, Domino's, Lauren Silva Laughlin, Sharon Lam Organizations: Safeway, REUTERS, Reuters, Nasdaq, Kroger, Aldi, Costco Wholesale, Companies, Thomson Locations: Tucson , Arizona, U.S, Cava

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