2 Red Flags for Instacart Stock
Grocery delivery provider Instacart (NASDAQ: CART) went public last week at $30 per share. An initial surge quickly faded, bringing the stock back to that IPO price as of Thursday afternoon. Back in 2021, Instacart was worth $39 billion based on a private funding round. At $30 per share, the company is valued just shy of $10 billion.
While this steep decline in valuation is a red flag in its own right, there are a few concerning things about Instacart that investors need to know.
Instacart, also known as Maplebear, grew its total number of orders by 18% in 2022, a solid performance after orders rocketed higher during the pandemic. But 2023 looks like a different story. Beginning in the first quarter of 2022, orders have essentially stagnated. The company booked 67.9 million orders in the first quarter of last year, and it has failed to surpass that total in any subsequent quarter.
Source Fool.com
