One of the most eagerly awaited initial public offerings (IPOs) drops today. Food delivery startup Instacart made a name for itself during the Covid-19 lockdown period of 2020. Now the company has finally opted to go public after years of floating it as a possibility. Wall Street is watching as it begins trading today on the Nasdaq. The new stock will be listed under the symbol CART. Ever since British chipmaker Arm (NASDAQ:ARM) enjoyed a successful trading debut last week, investors have been wondering if the Instacart IPO will bring similar momentum. That’s part of why there’s pressure on CART stock to help usher in a new IPO boom. Per Bloomberg:

“If Instacart trades well, it will add momentum for other listings. Boston-based marketing and automation startup Klaviyo Inc., which is expected to price its IPO Tuesday, decided on Sunday to boost its target for the listing to $557 million, Bloomberg News reported. German footwear maker Birkenstock Holding Ltd. is also preparing to go public within weeks.”

Since ARM stock appears to be running out of momentum today, eyes will be watching today’s trading debut even more keenly.

What else do investors need to know as this trendy company finally takes the plunge to start trading? Let’s dive into Instacart and take a closer look at what may make or break it post-IPO.

CART Stock: What to Know

1. 1. Instacart has been considered a pioneer in the home grocery delivery space since its founding in 2012. During the 2020 lockdowns, its valuation rose as high as $39 billion.
   2. The Instacart IPO price range currently ranges from $28 to $30 for CART stock. That would put the company’s value between $9.3 billion and $9.9 billion. It hiked its price range following the success of Arm’s IPO.
   3. The IPO comes after a year of impressive growth. Instacart saw revenue reach  $1.5 billion during the first six months of 2022, an increase of nearly 31%. According to Bloomberg, this has been accompanied by “supercharged growth in its higher-margin ad segment, the second-biggest revenue contributor after the core grocery delivery service.”
   4. Instacart has lined up some prominent investors already. In late August 2022, it disclosed an agreement with PepsiCo (NASDAQ:PEP) to make a sizable investment. Other investors include Norges Bank, the central bank of Norway and leading venture capital firm Sequoia Capital.
   5. The company’s advertising business is also expanding. Barron’s reports that it has grown 30% since last year, noting that Instacart has described this venture as “highly profitable.”
   6. Some experts have speculated that Instacart’s $99 per year subscription service, Instacart+, could be the company’s key to remaining profitable in the coming year. Analyst Nicholas Cauley of Third Bridge has praised its user-friendly app and “industry leading selection,” both of which he believes keep users on the platform.
   7. According to The Information, Instacart also has an under-the-radar history of making deals with grocery stores, including Albertsons (NYSE:ACI). The tech news outlet notes that the popular chain is also a shareholder and is likely to profit when CART stock begins trading.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.