Instacart IPO: Why ad revenue is important to watch

Instacart is planning for an IPO in September, according to a report from Bloomberg. It would be the latest in a string of companies that have gone public in recent months, such as Cava (CAVA), Savers Value Village (SVV), and VinFast Auto (VFS). Rainmaker Securities Managing Director Greg Martin says the market "has shown some receptivity to new issuances" and that "there's demand for growth companies." For Instacart, Martin says, the challenge is "its actual grocery volume... is actually not growing very fast", noting that the company is actually seeing more growth in ad revenue.