Instacart's IPO has arrived

Market Overview
Read time 1.2 minutes

Year To Date Performances:

1. Instacart's eagerly anticipated IPO has arrived, with the ticker "CART" making its market debut today. Instacart hopes to raise over $600 million with a valuation of around $9 billion. Instacart's financial health seems robust, showcasing a $242 million profit in 2023 as opposed to last year's $74 million loss. Much of this revenue uplift comes from its burgeoning ad segment. However, it's not all smooth sailing. Early investors, who once valued the company at $39 billion, might now have to stomach a staggering 75% valuation reduction. Notably, major players like PepsiCo and Sequoia are expected to grab a significant chunk of the IPO shares. On the surface, Instacart's offering appears lucrative, yet considering the unpredictable nature of the grocery sector and historical IPO performances, it's a coin toss.

2. Oil drama unfolds as U.S. petroleum reserves hit a 40-year low while worldwide demand for oil surges. As OPEC plays hard to get with its production cuts, refineries are caught in the middle. With the Fed in a balancing act over inflation, oil prices seem to be marching to their own rhythm. This recent 11% surge has made investors more optimistic than they've been in over a year. And here's a shocker: gasoline's spike is the main catalyst for the latest inflation surge. Analysts now believe that Biden’s attempts to lower oil prices over the last 18 months could make a baseline price of $100 a barrel a reality in the near future.

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4. Headlines

   1. On average, over the last 4 years, the top 10 initial public offerings have plummeted by a staggering 47% from their debut closing prices.

   2. An interest rate hike is not expected by the Fed this week, but investors are pricing in a 35% chance of a hike in November.

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