Today is Tuesday, September 19, 2023.
The Early Bird Index today is 56.21.
New to this newsletter? Sign up here.
Instacart Prices IPO at $30
One week after the biggest IPO of the year, there’s another big initial public offering today.
Details: Instacart (Nasdaq: CART) goes public today. The grocery delivery platform will offer 22 million shares of common stock. The IPO will also be priced at $30 per share. This is at the high end of Instacart’s projected share price range. It values the company at around $10 billion.
Powering the Story: This is the first major venture-backed tech company to go public since late 2021. Since then, the appetite from investors for tech has declined because of higher inflation and interest rates. Instacart’s IPO is a step in the right direction for tech IPOs.
Yes, But: Instacart was originally worth about $39 billion in 2021. Since then, the valuation has dropped to about $10 billion.
Final Thoughts: Should you invest in Instacart’s IPO? While IPOs tend to get a pop when they go public, many eventually fall back down to earth as the stock settles in.
Notables
Notable Earnings Today: AutoZone (NYSE: AZO), Steelcase (NYSE: SCS), Endava (NYSE: DAVA), Apogee Enterprises (Nasdaq: APOG).
Notable IPOs Today: Instacart (Nasdaq: CART), Davis Commodities Limited Ordinary Shares (Nasdaq: DTCK), Safe & Green Holdings Corp. Common Stock Ex-distribution When Issued (Nasdaq: SGBXV).
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: Building Permits (8:30 a.m. ET), Housing Starts (8:30 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
Dollar Flight Club (Sponsored)
Dollar Flight Club is offering their Lifetime Membership for $129 (usually $1,690) for the next 24 hours. Lifetime Members get up to 90% off all flights for life! Fly roundtrip to Paris from $320, Hawaii from $197, and more. Get 93% off lifetime or try for free now.
Stitch Fix Loses Active Clients
Stitch Fix (Nasdaq: SFIX) dropped 6.56% in after-hours trading on Monday after the online personal styling service posted disappointing financial results.
Financials: Stitch Fix reported a loss of 24 cents per share in the past quarter, which was worse than expected. The revenue reached $375.8 billion, which was better than expected.
Big Drop: Revenue declined 22% in the quarter. For the full year, the number of active clients declined 13% to 3.2 million. As a result, net revenue per active client also decreased by 13%.
Outlook: Stitch Fix also expects revenue to decline between 18% to 20% in the current quarter and between 15% to 20% for the full year.
Quote: “Our current business results are not indicative of what I believe this company can deliver, and I am committed to realizing the full potential of Stitch Fix and driving long-term, profitable growth.” - CEO Matt Baer
Stock Price: The stock is up 2.69% this year, but down 19% in the last 30 days.
Final Thoughts: It’s been a year of change for Stitch Fix. The company added a new CEO while preparing to close its U.K. business. Stitch Fix rose to prominence during the pandemic, but the stock is down 96% since 2021. There is a long way to go before this company can turn things around.
Chainlink Jumps Thanks to Partnership
The cryptocurrency Chainlink increased 7% on Monday, higher than most other cryptos that day, thanks to a partnership between Chainlink and the interbank messaging system SWIFT.
Final Thoughts: This partnership is good for Chainlink because it serves as another real-world application for the blockchain network. But Chainlink’s price has been volatile lately.
Trends to Watch
About Time: Norfolk Southern announces details of plan to pay for lost home values because of Ohio derailment (Associated Press)
A Cost-Friendly Holiday Season: Americans plan to keep cutting back on spending through the holidays, new survey says (CNBC)
Trying to Rise: Bitcoin Gives Up $27K in Sharp Tumble as Crypto Liquidations Top $100M (CoinDesk)
Messy Breach: August cyberattack could result in Clorox wipe shortage, company warns (Fortune)
Thank you for reading!
Forward to a friend and tell them to sign up here.
Be social: Like our Facebook page and follow us on Twitter.
Want more investing tips? Listen to the podcast.
Show Your Support: Buy Me a Coffee.
Questions or comments? Hit reply to reach out.