Instacart Files for IPO – Is it a good time to invest in a new public company?

0

JHVEPhoto/Getty Images

Online grocery delivery app Instacart has announced that it has filed an initial public offering (IPO) by its company. The filing was confidential, but Instacart’s statement confirms an earlier report from Bloomberg.

Check Out: 20 Best Places to Live on Just a Social Security Check
More: 22 Side Gigs That Can Make You Richer Than A Full-Time Job

Listing could happen this year, next year — or not at all, according to Bloomberg, whose reporters spoke to people familiar with the matter. Goldman Sachs Group Inc., JP Morgan Chase & Co. and other banks are involved in the offer, according to Bloomberg sources.

In March, Instacart slashed its valuation to $24 billion, a 40% drop from the peak of the pandemic, when the company was valued at $39 billion and riding the waves of the growing delivery trend. groceries at home. However, the company also recently raised $200 million in funding, and FinanceBuzz writes that an IPO could push the valuation to $30 billion.

If the company continues to thrive in a post-pandemic era, investing in Instacart’s IPO might be a smart move. As the stock market as a whole continues to plunge and investors tread cautiously, you might be able to partake in Instacart’s IPO at huge value.

Related: 6 Alternative Investments to Consider for 2022

As with any stock, in any market, it’s important to look at the fundamentals and long-term prospects of the company. As investor Warren Buffett famously said, “If you’re not ready to own a stock for ten years, don’t even think about owning it for ten minutes. He also said of his investment firm Berkshire-Hathaway, “Our favorite holding period is forever.”

Even with more people venturing out of their homes to shop in person, Instacart is showing potential as a growth company. Instacart works with 500 retailers — and recently partnered with grocery chain Kroger to develop a digital convenience store, which could cut delivery times from one or two hours to 30 minutes, FinanceBuzz reported.

The Instacart app continues to evolve, offering a deals tab and dollar store hub to help customers save even more on groceries and household items. It also offers a pickup option for those who don’t mind leaving home (or have the ability to) but don’t want to deal with the hassle of grocery shopping.

See: POLL: Do you think the Fed’s rate hike will help or hurt the economy?
Find: Elon Musk, Inflation, Crypto Crash, SNAP/Food Stamps, Social Security and other financial updates

With all of these developments on the horizon, those considering investing in Instacart’s IPO could end up with a solid long-term investment, regardless of how the economy performs over the next 12 years. month.

More from GOBankingRates

About the Author

Dawn Allcot is a full-time freelance writer and content marketer with interests in finance, e-commerce, technology, and real estate. His long list of publishing credits includes Bankrate, Lending Tree and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology and entertainment website. She lives in Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten and three lizards of different sizes and personalities – plus her two children and her husband. Find her on Twitter, @DawnAllcot.

Share.

Comments are closed.