Private forecasts from analysts at banks that underwrote Instacart’s recent initial public offering (IPO) suggest that the company may experience slower revenue growth and lower profits in its first few quarters on the public markets. This news could potentially have a negative impact on Instacart’s stock price if the company fails to surpass these forecasts. Analysts at Goldman Sachs and other banks anticipate that Instacart’s revenue growth in the second half of the year will be between 7% and 8%, significantly lower than the 31% growth recorded in the first half, and the 50% growth achieved in the second half of 2022.
These predictions indicate a potential slowdown in Instacart’s business momentum, which may cause concern among investors. With the company’s stock price still hovering around its IPO price, failure to meet or exceed these forecasts could further dampen investor sentiment towards Instacart. While the specific reasons behind these projections are not mentioned, it is likely that factors such as increased competition in the online grocery delivery market and potential challenges in sustaining growth at the same rate could be contributing factors. As Instacart navigates its early days as a publicly traded company, its ability to overcome these expectations and deliver stronger financial performance will be closely monitored.