Shares of online grocery company Instacart (CART) fell 11% on their second day of trading, erasing nearly all the gains the stock had achieved from its initial public offering (IPO).
Instacart’s stock closed on September 20 at $30.10 U.S. per share, which is only 10 cents higher than the company’s IPO price of $30 U.S.
The company’s stock had jumped 40% higher to begin trading on the Nasdaq exchange at $42 U.S. per share, but then steadily declined to end its first day of trading at $33.70 U.S. per share.
The stock’s fizzle comes as a disappointment as Instacart was expected to help reinvigorate an IPO market that has largely been dormant for the past 18 months.
Analysts say Instacart’s plummeting share price suggests that investors are hesitant to buy into disruptive technology companies and that they might still be weary from last year’s bear market.
Another tech company that recently held its IPO, British microchip and semiconductor company Arm Holdings (ARM), has also seen its share price pullback since its market debut on September 14.
After quickly rising to $69 U.S. per share, Arm’s stock has since fallen to $55.17 U.S. per share, down 20% in its first week of trading