Instacart, a popular grocery delivery platform, may face slower revenue growth and lower profits than initially anticipated, according to private forecasts by analysts from banks involved in its recent initial public offering (IPO). This cautious outlook could potentially impact Instacart’s stock price, which has been trading around its IPO price. To meet the expectations set by analysts, the company needs to surpass these projections.
Insiders have revealed that analysts at Goldman Sachs and other banks predict that Instacart’s revenue growth for the second half of the year will range between 7% and 8%. This forecast represents a significant decline from the impressive 31% growth the company experienced in the first half of the year and the substantial 50% growth from the second half of 2022. These lowered growth expectations could present a challenge for Instacart as it navigates the public markets.
Investors and stakeholders will closely watch Instacart’s performance in the coming quarters to see if the company can overcome the projected slowdown in revenue growth. The pressure is on for the grocery delivery platform to exceed expectations and demonstrate its ability to drive sustained growth and profitability. Failure to do so may lead to a further decline in the stock price, potentially posing challenges for Instacart’s future in the highly competitive on-demand delivery market.
