Instacart Stock: Should You Invest After the Instacart IPO?

Instacart stock started trading at 12:50 pm ET on Tuesday, September 19th, 2023. The Instacart stock symbol is “CART” and trades on the Nasdaq. 

SoFi Invest offered retail access to the Instacart IPO as an underwriter. Robinhood also provided IPO access. Investors needed to request shares last week to receive IPO shares. Open an account and buy Instacart today after it begins trading and access to future high-demand IPOs via each platform. 

***Update***: Reports of investors received 5% of requested shares at SoFi. Robinhood allocations came in at one share per investor, per reader reports. 

Read the Instacart S-1 filing here. 

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Instacart IPO Terms

• Number of Shares: 22 million
  • 14,100,000 newly issued
  • 7,900,000 from selling stockholders
• FINAL Price: $30
• Opening Trade: $42 (up 40%)
• Raise: $660 million
• Valuation: $10.2 billion (fully diluted)
• Pricing: Complete!
• Instacart IPO Date: September 19th, 2023. 12:50 pm ET. What time do IPOs start trading?
• Exchange: Nasdaq
• Instacart Stock Symbol: CART
• Access the Instacart Roadshow here 

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Latest Instacart Stock IPO News

01/30/2024: Suit alleges Instacart misled investors ahead of IPO
09/19/2023: ***Instacart Stock First Trade – $42, up 40%***
09/18/2023: ***Instacart IPO Price set at $30***
09/18/2023: Instacart Is Planning to Sell Shares in IPO for $30+
09/15/2023: Amended S-1 Filing Released, Raises Range
09/11/2023: Amended S-1 Filing Released, Sets Terms
09/10/2023: Reuters: Instacart to target valuation of up to $9.3 bln in IPO
08/25/2023: ***Instacart files for an IPO***
35+ older news stories…

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Please note: This article is not a recommendation to buy or sell shares of Instacart stock. Individual investors must perform personalized due diligence to determine if investing in Instacart aligns with their broader investment objectives. 

What is Instacart?

Instacart is a grocery pick-up and delivery service headquartered in San Francisco. Its corporate name is Maplebear, Inc., doing business as Instacart. 

The company partners with more than 25,000 grocery stores and “big box” chains to hand-pick store items and deliver them to its customers’ doors. 

Customers shop online using the Instacart Marketplace via desktop or handheld device. 

Then Instacart hires personal shoppers who enter the stores, select and pack items, and deliver to the customers. Customers pay a delivery fee ($3.99) plus a 5% service fee. Tipping is also encouraged. 

Here’s a recent commercial featuring Lizzo:

Is Instacart a Publicly Traded Company?

Yes! 

When was the Instacart IPO date?

The Instacart IPO date was Tuesday, September 19th. The stock began trading at 12:50 ET. 

Bookmark this page for the latest news. Check out this list of the most anticipated upcoming IPOs for more investment ideas. Instacart is #1 on the list, but there are 50 more startups in the IPO pipeline.

What is the Instacart Stock Price?

Instacart stock will begin trading in the late morning or early afternoon of the Instacart IPO date, at which point all retail investors can buy the stock. 

Read more: What time do IPOs start trading?

What is the Instacart Stock Symbol, Instacart Ticker?

The Instacart stock symbol is “CART“.

Will Instacart Stock be a Motley Fool Stock Advisor Recommendation?

We won’t know until after the IPO if Instacart will be a Motley Fool Stock Advisor recommendation.

However, Instacart stock fits the mold of high-growth, disruptive business models that the Fool typically recommends. 

When the Motley Fool recommends a company, there is usually an immediate spike in the price.

Fool newsletter subscribers are notoriously long-term-minded and rarely sell, meaning winning stock picks will continue to rise over many years. 

Instacart may also receive a recommendation from the Motley Fool Rule Breakers newsletter or other premium services. Both services have handily beaten the broader market since the early 2000s. 

Read this Motley Fool Stock Advisor review to learn about their stock selection methodologies and about how you can participate in excellent returns.

Stock Advisor is currently half-off at just $99 for an annual subscription. I’m a subscriber and have more than doubled my money on two past recommendations (TTD, ZM).

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Can You Buy Instacart Stock? Yes

Now that the Instacart IPO is complete, investors can buy Instacart stock via any online broker. 

I recommend several in this article for IPO access. Long-term investors may prefer M1 Finance. 

The Instacart IPO was September 19th, 2023

Instacart IPO Valuation

The Instacart IPO price of $30 set the Instacart valuation at $10.2 billion.

The pre-IPO filing Instacart valuation was about $12 billion (as of April 2023). 

The Information reported on December 27th, 2022, that Instacart reduced its internal valuation to $10 billion, but (The Information reported again) reversed it by 18% just two months later. 

The internal valuation is used for employee-issued stock. 

A previous Instacart valuation of $13 billion was reported by The Information and Bloomberg in October 2022. 

This lower Instacart valuation follows the company slashing its valuation by 40% to $24 billion in March to reflect the 2022 selloff in tech stocks.

Ambitious investors received IPO access to Instacart. Most retail investors did not get access.

Who Owns Instacart Pre and Post-IPO?

Shareowners make up a large portion of Instacart owners now that the IPO is complete. 

The pre-IPO shareholders are the founders, employees, and several venture capital firms, including Andreessen Horowitz, T.Rowe Price, Khosla Ventures, Tiger Global Management, Coatue Management, Sequoia Capital, and Kleiner Perkins.

Instacart announced a private funding round on October 8th, 2020, led by Valiant Capital Management and D1 Capital.

The company announced another round of private funding on March 2nd, 2021. Instacart raised $265 million, valuing the company at $39 billion at the time. 

How Some Investors Invested in the Instacart IPO

The following online brokers are the most likely to provide IPO access to retail investors. These brokers have built software platforms to facilitate IPO access for retail investors.

• SoFi Invest (Instacart underwriter)
• TradeStation
• Robinhood
• Webull

SoFi Invest was the most likely online broker to provide IPO access to its customers during the Instacart IPO and delivered. Though many investors were disappointed with the fractional allocation. The company was listed as an underwriter in the SEC S-1 IPO filing. 

Reporting by the Financial Times on September 2nd confirms SoFi “intends to offer shares to users of its retail investment app, according to two people involved in the deal.”

The 09/11 amended S-1 filing indicates: “We currently anticipate that up to an aggregate of 1% of the shares of common stock offered hereby will, at our request, be offered to retail investors through SoFi, as an underwriter, or Robinhood, as a selling group member, via their online brokerage platforms.”

Open and fund an account with SoFi Invest to have a shot at investing in future IPOs. Wait too long, and you won’t get access. 

***Update***: Reports of investors received on 5% of requested shares at SoFi. Robinhood investors received zero to one share.

However, please read the FAQs to understand the anti-flipping policy before investing.

There are no account minimums to invest in IPOs at SoFi Invest. However, there are no guarantees SoFi will receive shares to allocate to customers. If the broker receives shares, the investment window will be very brief. Carefully follow the IPO investing guidelines.

To increase your chances of receiving IPO shares, open and fund an account ahead of time. Some IPO orders require that “funds must settle before the order date.” Cash transfers can take up to seven days to settle. 

Robinhood was also listed in the amended S-1 update. SoFi and Robinhood both delivered IPO shares to their customers. 

Depending on the number of shares allocated and investor demand, customers may receive all, some, or none of the shares requested. For high-demand IPOs, users may consider doubling their share request in hopes of receiving their desired shares. 

Read and understand SoFi Invest’s IPO buying process, risk disclosure statement, and share flipping policy before buying and selling IPO shares. Also read the S-1 filing and amendments before investing. 

TradeStation and the online investing app Webull also provide free access to IPOs via their partnerships with ClickIPO, an IPO investing app.

Joining a broker that offers access to IPOs does not guarantee a share allocation, especially in high-demand IPOs. You may be better off waiting for the company to start trading after the IPO.

Check out our partner website, Access IPOs, to learn more about IPO investing. 

Your chances of getting IPO shares depend on four factors:

• IPO demand
• Your broker and eligibility
• Your assets under management at the broker
• Propensity to flip shares

As IPO demand increases, the chances of receiving IPO shares decrease. Therefore, the IPOs that are most interesting to the masses are the hardest to access. 

Lower-demand IPOs may be available to retail investors who are customers of participating brokers. 

For an extensive list of IPO-friendly online brokers and their eligibility, check out this page.

Wealthy customers ($1 million+ accounts) at Fidelity, TD Ameritrade, and Schwab may have a better shot at some IPOs, depending on demand. 

Instacart Directed Share Program

Unfortunately, an Instacart Directed Share Program was not made available to customers. 

Some Investors Acquired Instacart Stock in Pre-IPO Secondary Marketplaces

***Now that the Instacart IPO is imminent, this is no longer an option. ***

Founders, early employees, and investors often find themselves in a difficult predicament. They own valuable shares of a company that doesn’t trade publicly. 

These shareholders might have multi-million dollar net worths because of their stock holdings, but the stock is not liquid because it doesn’t trade on an exchange. 

A few platforms have evolved to give these individuals a way to liquidate their holdings before the IPO.

Equitybee provides accredited investors access to pre-IPO startups by funding employee stock options. In exchange, investors gain a portion of the future stock value.

Other prominent investment platforms include Linqto, EquityZen, and Forge Global. 

Read more: The Best Pre-IPO Investing Platforms

These sites bring liquidity to an otherwise illiquid asset. Accredited investors may join these sites and attempt to buy shares of these companies when they become available. 

The shares are only offered to accredited investors because the company’s financials are not publicly filed with regulators yet, increasing investors’ risk. 

For high-profile companies, demand is high, lowering your chances of acquiring shares, even if you’re accredited. 

Instacart S-1 Filing

Read the S-1 filing below.

The latest is available on the SEC website.

Monitor our partner site’s recent S-1 filing feed to get up-to-the-minute filings. 

What is the Best Online Broker to Buy Instacart Stock after the IPO?

For investors looking to participate in IPOs, SoFi Invest offers free IPO investing to customers. However, you’re never guaranteed a share allocation, and most high-demand IPOs will not be available. 

Long-term investors may prefer an online broker that’s better for dollar cost averaging and dividend reinvestment. 

I’m a big fan of the online brokerage M1 Finance. M1 Finance is a reliable and robust, commission-free online broker for beginner to intermediate investors. It’s easy to get started.

As your investing skills and portfolio mature, M1 is one of the best platforms to scale.

They also offer an integrated checking account and low borrowing rates. Read my complete M1 Finance review here. 

M1 Finance does not offer IPO access. But it’s my favorite for everyday investing. 

The platform is more intuitive than traditional brokers because it’s built on a modern technology platform. You create portfolio “pies” that contain all the stocks and ETFs you want to own and in what percentages. Simply add Instacart stock to your portfolio pie. 

Learn More about M1 Finance

Instacart News Archives

09/10/2023: WSJ: Instacart to Target Range of Under $10 Billion
09/06/2023: Instacart Prepares to Set IPO Price Range as Early as Monday
09/02/2023: SoFi to underwrite first big IPO after securing Instacart listing
08/31/2023: Arm, Instacart, Klaviyo Prep for Their IPOs with Caution
08/29/2023: 6 takeaways from Instacart’s IPO filing
08/19/2023: Instacart’s Revenue Rose More than 30% in First Half
08/17/2023: Instacart Plans for September IPO in Boost for U.S. Listings
04/02/2023: Instacart Hikes Its Valuation 18%
05/11/2022: Instacart Announces Confidential Submission of S-1 IPO Filing
03/07/2023: Instacart Joins ChatGPT Frenzy
12/27/2022: Instacart cuts internal valuation (Again) to $10 bln
10/20/2022: NYT: Instacart Is Said to Pull Plans to Go Public in 2022
10/14/2022: Instacart Cuts Internal Valuation Third Time to $13 Billion
10/06/2022: Instacart IPO Could Fuel a ‘Game of Thrones’ for Food Delivery
09/24/2022: Instacart Cuts Staff, Curbs Hiring in Run-up to IPO
09/19/2022: Instacart Plans to Focus IPO on Selling Employee Shares
08/22/2022: T. Rowe Cuts Stripe, Instacart Valuations After Tech Selloff
08/22/2022: Instacart Revenue Growth Accelerates Ahead of Planned IPO
07/28/2022: Instacart Aims to Go Public Before Year’s End
03/28/2022: Instacart’s CEO Says Company Is In ‘No Rush’ to Go Public
03/25/2022: Instacart slashes valuation by almost 40% to $24 billion
03/16/2022: Instacart’s CEO Is ‘Worried’ About Inflation of Food Prices
01/20/2022: Chase to launch Instacart co-branded credit card
12/10/2021: Instacart president Carolyn Everson announces departure
11/16/2021: Instacart Pushes Off Public Offering to Focus on Grocery Services Growth
08/14/2021: Can Instacart reconfigure America’s grocery wars?
08/11/2021: The Information: DoorDash Recently Held Talks to Buy Instacart (Reuters)
08/04/2021: Instacart hires former Facebook exec Carolyn Everson
03/18/2021: Instacart Eyes Fourth-Quarter Public Listing, International Expansion
03/05/2021: Instacart mulls direct listing in snub to IPOs
03/02/2021: Instacart’s valuation doubles to $39 billion
02/24/2021: Instacart adds board members, including Facebook’s Fidji Simo, as it preps IPO
01/07/2021: Instacart Announces Industry Veteran Nick Giovanni is Joining the Company as CFO
12/18/2020: Dick’s teams with Instacart for same-day delivery at 150 stores amid holidays
11/12/2020: Reuters: Instacart taps Goldman Sachs to lead IPO at $30 billion valuation
11/05/2020: DoorDash and Instacart face brighter IPO prospects after ballot victory in California
10/08/2020: Instacart Valuation Jumps to $17.7 Billion in Grocery Investment
10/08/2020: Instacart consults with banks ahead of potential IPO
07/16/2020: Instacart is suing Uber’s grocery delivery service Cornershop
06/11/2020: Now Valued at $13.7 Billion, Why Instacart’s Next Investment Round Needs to Be an IPO

Conclusion

For ordinary investors, it was challenging to acquire Instacart IPO shares. Many of us received IPO allocations, but the number of shares was disappointing. 

If you’re determined to invest in future IPOs, open an account with the above-listed brokers that offer IPO access. 

Otherwise, you’ll need to wait for the IPO date to buy shares. 

But that’s not necessarily a reason to be disappointed. Google’s shares rose 18% on the day of its IPO. Many people probably sold that day. Had they held for the next decade, their holdings would have been up 1,000%.

Please perform due diligence and read the SEC S-1 filings for all IPOs, and don’t buy Instacart stock with money you can’t afford to lose. 

Readers may also enjoy:

• Epic Games Stock
• Stripe Stock

Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long TSLA, ABNB, TROW. This article is an advertisement on behalf Social Finance, Inc., or SoFi Lending Corp. 234 1st Street, San Francisco, CA 94105. California Finance Lender #6054612. NMLS #1121636.