2024-01-23 22:40:00
Instacart shares are trading lower after the company said it would lift the post-IPO restriction on the sale of shares by interested parties on February 15. The move is expected to allow entities that invested early such as Sequoia Capital (which owns 18% of the company) and D1 Capital (which owns 13%) to sell their positions in the company.
The restriction was expected to expire approximately 180 days after Instacart stock began trading. The container shipping company was issued on September 19 and is actually expected to remove the restrictions about 150 days after the issue. The company also announced that it will report its results for the fourth quarter on February 13.
The company’s shares encountered difficulties in the public market, amid fears of slowing growth and intense competition in grocery deliveries. The company’s stock recently received a boost following a review by an analyst who estimated that Instacart could be an acquisition target for the ride-sharing company Uber.
Wolfe Research analyst Deepak Mathibnan noted that there are three main reasons why Uber’s acquisition of Instacart could make sense: First, it would accelerate Uber’s entry into the trillion-dollar container sector. In addition, the move is expected to create significant synergy in revenues and costs. Finally, there is very little regulatory risk, as Uber owns less than 1% of the grocery delivery market. “While Uber’s fundamentals are solid for the mid-term, the container business is a key category for sustaining long-term growth and competition is moving quickly,” Mativnan wrote. “Uber has cash and equity levels that can make the deal possible.”
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