Prof G Markets: Virgin Galactic is Going to Zero, Stock as Collateral + Instacart & the IPO Market

Grocery Growth

The grocery delivery industry has seen significant growth, especially during the pandemic. Scott Galloway notes that Instacart's revenue surged by 157% between Q1 and Q2 of 2020, and although growth has slowed, it remains steady. He believes this trend will continue, with online grocery sales projected to grow at a CAGR of 11.7% over the next five years 1. Scott also highlights the poor retail experience in traditional grocery stores as a driving factor for the shift to online delivery 2.

Grocery stores have literally, in my view, for the most part, not innovated, and they are difficult, hard to park at. I never need to walk into a grocery store again.

--- Scott Galloway

This shift is seen as a permanent change in consumer behavior, making home delivery a lasting feature of the market.

   

Instacart IPO

Instacart's performance is pivotal for the IPO market. Scott Galloway explains that Instacart's strong numbers and market awareness could set the tone for future IPOs. The IPO market saw a significant decline in 2022, with proceeds falling 70% compared to the previous year 3. Scott emphasizes that a successful Instacart IPO could rejuvenate the market and provide a much-needed boost.

This Instacart is not only important for growth, important for the IPO market, it could be important for the entire market.

--- Scott Galloway

He also discusses the broader implications of going public, including raising capital and providing liquidity for investors 4.