Instacart Stock Closes Below IPO Price Week After Public Debut

Instacart’s stock closed below its initial public offering (IPO) pricing for the first time on Tuesday (Sept. 26), a week after its public debut.

The online grocery delivery company’s stock fell 1.69% and closed below $30, reflecting a broader decline in both the overall stock market and the retail sector, Seeking Alpha reported Tuesday. This decline coincided with a decrease in consumer confidence, attributed to rising prices, concerns about the political situation and higher interest rates.

Instacart closed at $29.89, reaching as low as $29.75 during the trading session, according to the report. The company’s IPO was initially priced at $30 per share.

As a result of this decline, Instacart’s market capitalization now stands at about $8.4 billion, down from over $10 billion following its public debut, the report said.

Market analysts are awaiting Instacart’s first earnings report as a publicly traded company, as it is expected to have a significant impact on the stock’s performance, per the report. The earnings report’s reception will heavily depend on the company’s full-year guidance, which has yet to be announced.

In recent news, Ravi Gupta, a partner at Sequoia Capital, joined Instacart’s board of directors last week, according to the report. Gupta previously served as Instacart’s chief financial officer and chief operating officer. Furthermore, Fidji Simo, CEO of Instacart, was selected to assume the role of board chair as well.

Instacart flirted with “busted” IPO status — in which a stock trades below the initial offer price — last week. It had earlier popped to a high of $42, PYMNTS reported Friday (Sept. 22).

The company’s market cap dipped to about $8.3 billion at times during the week. During its private-market days, it had been valued at nearly $40 billion.

The day of Instacart’s IPO was Sept. 19. After being priced at $30 a share the day before its public debut, the stock opened at $42 on Sept. 19, rose as high as $42.95 during the day and closed at $33.70.

The company had long been considering a public listing, and planned to do so before the end of 2022, but decided to delay when the market for IPOs tumbled.

Its public debut was seen as a promising signal for an IPO market that has been reawakening.