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Instacart, a grocery delivery company based out of San Francisco, California, now operates in over 5,000 cities across North America. Since the COVID-19 lockdown measures began last March, Instacart’s popularity drastically increased and the company’s IPO plans to unroll in 2021.
Interested in buying shares in Instacart? Continue below to learn how today.
How to Buy Instacart IPO Stock Summary
Once Instacart completes its initial public offering (IPO), you can take 3 main steps to buy Instacart stock. For more in-depth information regarding how to buy IPOs, check out how to invest in upcoming IPOs.
Each step requires investors to consider a variety of factors:
- Select a brokerage service. Before you can access the market to buy shares in Instacart, you need to open a brokerage account. Know your investing goals before you make your decision.
- Deposit funds. Once you open up a brokerage account, you now need to deposit funds into it. Keep in mind that many brokers allow you to trade instantly with your funds, while others require a waiting period.
- Search for Instacart and hit “buy.” Once Instacart successfully completes its IPO, you should have no issues finding shares to buy. Determine how many shares you wish to purchase and hit “buy.”
When is the Instacart IPO Date?
Although the IPO date hasn’t been confirmed, the company selected Goldman Sachs to spearhead the effort. All indications point to Instacart’s debut on the public markets sometime in early 2021. For more info on IPOs, check out What Does IPO Mean?
Instacart Financial History
Instacart was founded in 2012 by Apoorva Mehta, who used to work at Amazon. By 2015, Instacart had 200 employees and began rapidly growing:
- By the end of 2016, Instacart drastically expanded its coverage in California and added the Chicago and Minneapolis markets.
- The following year, Instacart entered the Canadian market.
- By 2018, it had partnered with most major grocers throughout the United States.
- In 2020, Instacart had around 10,000 employees, with an additional 500,000 independent contractors.
- As of October 2020, Instacart was valued at over $17 billion, with its 2021 IPO expected to value at approximately $30 billion.
As the COVID-19 vaccine rollout continues around the globe, lockdown restrictions will likely lift. That said, millions of consumers have likely made the switch to shopping for their groceries online. The recent success of the DoorDash (NYSE: DASH) IPO lends further support for this thesis. If these online shopping trends continue beyond the pandemic, Instacart could bank on a wildly successful IPO in 2021.
How to Buy Instacart IPO (ICART) Stock
The online shopping space has continued as a bright spot since the COVID-19 pandemic began in 2020. Furthermore, the IPO market has been extremely hot over the past few months, with stocks such as Palantir Technologies Inc. (NYSE: PLTR), DoorDash (NYSE: DASH) and Airbnb (NASDAQ: ABNB) seeing massive gains. Another bright spot for Instacart: California’s passage of Prop 22, which will keep labor costs for its 500,000 gig workers extremely low.
- Pick a brokerage.
Before buying stock in Instacart, select a brokerage to trade. Most online brokers have switched to a commission-free model, so you should be able to buy stock in Instacart with zero additional fees.
Be sure to define your goals as an investor so you can select a platform that best meets your needs. Are you brand new to the stock market? You may want to choose a broker that offers paper trading, as this allows you to practice with fake money.
Finally, look out for any promotional offers from the different brokerages. These can result in bonus funds or even free stocks.
- Decide how many shares you want.
Once you have your own brokerage account set up, decide how many Instacart shares you want to purchase. Before you settle on this number, consider your investing time horizon and your expectations for the company.
Don’t invest more than you can afford to lose in one company. Since Instacart is a recent IPO, define the price point(s) that you plan to buy and sell shares.
After you take these considerations into account, you can look for a good price.
- Choose your order type.
Once you have determined how many shares of Instacart you want to purchase, decide which order type to use. Different order types have different pros and cons to them.
If you decide to use a market order to buy shares, your broker will execute the order immediately at the current market price. If you opt for a limit order instead, your broker will fill your order once you can buy it at your set price point.
- Execute your trade.
The last step to complete before you become an owner of Instacart is to execute your trade. All you need to do is hit the buy button and you can relax while your broker processes your order. Once the order is filled, your shares of Instacart will show up in your account.
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Consider Investing in Instacart
All in all, Instacart appears poised to have a successful IPO in 2021, especially if the shopping-from-home trend continues. Investing in a recent IPO like Instacart presents an added risk over more established stocks. Do your due diligence before buying shares and consider using a stop-loss order to limit your losses.