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Instacart Prices IPO at $30

Instacart Prices IPO at $30

And, Stitch Fix loses active clients.

September 19, 2023

Paper bags with groceries including fruits and vegetables and bread

Photo by Maria Lin Kim on Unsplash

Today is Tuesday, September 19, 2023.

The Early Bird Index today is 56.21.

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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).

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Stitch Fix Loses Active Clients

Gif by HannahWitton on Giphy

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.