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Instacart Stock Price Prediction As JPMorgan Rates It Overweight

The IPO hype in the US stock market seems to have died before even starting. Instacart stock price has tanked 22% below its IPO price which means all of the IPO investors are sitting at massive unrealized losses even if they haven’t sold yet. The situation is also similar for the stock of ARM Holdings which listed just a few days before Instacart.

The shares of the San Francisco based tech firm, have been in a tailspin since its trading debut. The stock opened at $41.95 on the NASDAQ stock exchange which was 40% above its IPO price of $30. However, the old stockholders took the opportunity to dump the shares in the market, resulting in a 15.37% drop in just the second trading day of the stock.

Nevertheless, there seems to be a strong demand for the share of the grocery delivery company below the $25 level. The stock is up 8.27% from its monthly lows which is a Silver lining for the bulls. However, the technical outlook on the stock remains bearish.

According to the most recent Instacart news, major financial institutions are becoming interested Instacart shares at current valuations. Recently, JPMorgan analyst Doug Anmut has rated the Instacart stock price to be ‘Overweight’. According to him, the online grocery services are set to grow and Instacart is a market leader in the sector.

Instacart Stock Forecast

In addition to the macro risks, CART is also not looking bullish from a technical perspective. It is always disappointing to see the stock of a newly listed company plunging below the IPO price after a couple of weeks of trading. This shows a very low demand for the shares as the aggressive sellers have to go down the order book to get their orders filled.

Due to the bearish market structure on the 4H chart, Instacart stock price prediction is looking bearish for the near term. However, this may change soon if CART breaks above the $30 level or breaks the bearish market structure.

I’ll keep you updated on Instacart and other important stocks on Twitter, where you are welcome to follow me.

Instacart stock price 4H chart
NASDAQ: CART Technical Analysis