Instacart and Arm shares fall premarket as all eyes turn to Klaviyo

Grocery-delivery app Instacart (CAR), known officially as Maplebear Inc., fell 4% in premarket trade Wednesday, a day after the stock debuted on Wall Street with a bang, opening 40% above where its initial public offering priced before easing later on -- potentially paving the way for more IPOs after a two-year dry spell. Arm Holdings Plc. (ARM), fell 1.8%. That stock, which went public last week with some fanfare, has now lost 9% in the week to date as the initial shine seems to be wearing off. The reception from Wall Street analysts hasn't been very enthusiastic. Of the four analysts surveyed by FactSet, who have already started coverage of Arm as they were not part of the IPO, only one was bullish, while two were neutral and one was bearish. The average price target is $51.75, or about 7.0% below current levels and just 1.5% above the IPO price. All eyes now turn to Klaviyo Inc. (KVYO), the digital marketing company that priced its IPO late Tuesday above its proposed price range at $30. Klaviyo's shares will start trading later Wednesday on the New York Stock Exchange, under the ticker 'KVYO.'

-Ciara Linnane

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09-20-23 0647ET

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