Instacart (CART) stock began trading on Tuesday, opening at $42 per share on the Nasdaq.
The grocery delivery app had set a price of $30 a share for its IPO, valuing it at roughly $10 billion.
Instacart’s IPO follows Arm’s (ARM) return to the public markets less than a week ago. After the chip designer’s IPO was initially welcomed by investors with the stock rising more than 20% during the first trading session, shares are now down more than 8% since the IPO day.
Instacart raised its pricing range into the IPO following Arm’s strong listing, sparking discussion about whether these public offerings could reinvigorate what’s been a dormant market over the past year. In 2021, 1,010 IPO deals were made per Dealogic. In 2022, that decreased to 173.
IPO experts told Yahoo Finance Instacart could server as a better barometer for an IPO market comeback because of how different its business is from Arm. Valued at $54.5 billion, Arm was the biggest IPO of 2023. The well-established chip designer, which has traded on the public markets previously, says it powers 99% of premium smartphones.
Instacart on the other hand will be publicly traded for the first time. A company once valued at $39 billion, Instacart has rebuilt its business to focus on advertising revenue, rather than just direct sales to customers.
The company reported revenue of $1.48 billion in the first half of 2023, up 31% from the same period a year prior. Advertising accounted for 28% of that revenue.
Josh Schafer is a reporter for Yahoo Finance.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance