Big Tech is Finally Heating Up
The IPO market is suddenly red hot now that Instacart has followed ARM's lead and applied for an IPO with American regulators
Instacart has been ascendant, especially since the pandemic brought grocery delivery to prominence. The company experienced some weakness last year thanks to inflation, but is finally strong enough to test the IPO market.
After 18 months of silence, this week really has blown the doors off the IPO market. Instacart is filing in the same week as chipmaker ARM, meaning that a massive amount of market cap is hitting the public market in September. Instacart is also in a really healthy position. Their prospectus showed 242 million in profits for the first half of 2023, compared to $428 million for the entirety of 2022.
WHY IT MATTERS
With inflation concerns still high and the markets worried about interest rates not coming down for years, this is honestly a great change of pace. Confidence is returning to the market as big tech names are entering the IPO space. Instacart is not even the only company filing today--email marketing darling Klaviyo also filed with the SEC to go public. Get ready for lots of new names on the NASDAQ!