Instacart shares pop 40% in Nasdaq debut: ‘user experience tends to win long term’

Instacart jumped a whopping 40% as it debuted on Nasdaq today – a day after it priced its initial public offering at $30 a share.

Alexis Ohanian shares his view on Instacart debut

The delivery giant touched $14 billion in valuation following the explosive rally this morning.

That’s still less than half what it was worth as a private company at the height of the pandemic. Still, Alexis Ohanian – an early Instacart investor said today on CNBC’s “Squawk Box”:

Instacart trimmed its headcount and lowered other costs related to customer and shopper support in its pursuit of profitability in 2022.

Revenue growth has slowed down at Instacart

The California-based company had $114 million in net income in its latest reported quarter.

But that profitability came at the cost of revenue growth. Instacart saw its revenue increase 15% only in Q2 versus about 600% shortly after the start of the pandemic. According to Alexis Ohanian, though:

Instacart sees notable names like DoorDash and Amazon as its top competitors. PepsiCo - the food and beverage giant invested $175 million in its preferred convertible stock.