Instacart Stock Soars on IPO Debut But Gains Fizzle as Growth Concerns Persist

Instacart priced its IPO at $30 per share, valuing the company at $9.9 billion, and shares surged over 40% on debut before falling back.
The grocery delivery firm generated enthusiasm with early profitability pivot but faces growth headwinds like rising competition.
Instacart's pandemic-fueled growth has slowed, with revenue up just 15% in Q2 2022 versus 40% a year earlier.
Analysts and investors question Instacart's long-term prospects given low margins in grocery delivery and preference for in-store shopping.
Founder Apoorva Mehta departed Instacart's board upon IPO completion, earning a $869 million stake payout.