Investing.com -- Instacart surged on its stock market debut on Tuesday as investors rushed to buy shares of the online grocery delivery company.
Instacart opened at $42 on the Nasdaq in afternoon trading, up more than 40% from its IPO price of $30 a share. The surge took its value of over $14B, well above its $10B IPO valuation.
The online grocery delivery company generates the bulk of its revenue from its core grocery delivery business, but has seen demand for grocery deliveries ease since the pandemic-era boom.
Instacart's data and advertising business, however, has continued to gain momentum, with advertising and other revenues rising 2.8% as a percentage gross transaction value in the second quarter from 2.7% in 1Q and 2.4% a year ago, according to the company's S-1 filing.