Yahoo Finance Live's Julie Hyman and Brian Sozzi report that Instacart's stock valuation has been chopped by almost 40%.
JULIE HYMAN: We were just talking about a new product offering from Instacart yesterday. And today comes the news that the company's valuation in the private market has been slashed by 40% to $24 billion. The company citing turbulence in the market, even as they say they're still confident in the business. But, you know, this has been a trend here, Brian Sozzi.
BRIAN SOZZI: Wow. Over the course of one day, you lose that much in valuation. I'm sure that was really pre-planned and worked on for some time. But nonetheless, Julie, I was thinking about this, this morning. This really goes back to Facebook's earnings.
You know, when Facebook came out a couple of months ago with that earnings report that absolutely, I think, shocked the market, stunned Silicon Valley, you really got the sense that that was really the starting point of a valuation reset in many upstart companies. Because if Facebook is struggling delivering profits, a company of that size, you have to wonder, what's happening within upstarts, which, in many cases, are not even making money to begin with.
JULIE HYMAN: You know, it's funny because the folks I talked to said that many of these companies still are having no problem raising money, but this would be one of the first big signs that maybe that's not the case, especially the latter stage companies. But we'll keep on monitoring that. And in the meantime, we've got to leave it there. It's time for the weekend, Brian. Are you going to go outside and start--
BRIAN SOZZI: I'm going to go get another watch, Julie. I'm going to get another watch.
JULIE HYMAN: That's a good plan also.