Instacart's IPO: From Soaring Debut to Subdued Stock

Instacart shares fell 5% as the grocery delivery app failed to maintain its strong gains on debut, joining other recent stock market entrants. Concerns about inflation and higher interest rates have led to caution among investors. Despite slowing from pandemic highs, Instacart's orders continue to grow as people maintain their lockdown habits of ordering groceries and essentials from home. However, there are concerns about consumers' willingness to pay extra for home deliveries and the company's ability to sustain margin expansion and revenue growth in the face of increased competition from food delivery providers, Walmart, Amazon, and traditional grocers. Retaining new customers, especially older shoppers who prefer brick-and-mortar stores, could also be a challenge for Instacart.