• CNBC's Jim Cramer gave investors his take on Instacart's IPO, saying he sees a bull and bear case for the stock.
• Instacart is the first notable venture-backed company in the U.S. to go public since December of 2021, and its shares popped 40% at the open Tuesday, hitting the market at $42 a share versus its $30 pricing late Monday.

CNBC's Jim Cramer on Tuesday gave his take on the initial public offering of Instacart, an online grocery-delivery service that found success during the pandemic, saying he's interested in the stock but doesn't recommend investors buy a large position in it.

Instacart shares popped 40% at the open Tuesday, hitting the market at $42 a share versus its $30 pricing late Monday. The stock closed at $33.70 as investors locked in their initial gains. At Tuesday's close, the company is worth just over $11 billion.

Instacart is the first notable venture-backed company in the U.S. to go public since December of 2021.

"So, is Instacart worth buying up here in light of those numbers?" Cramer asked. "I've got to tell you, I'm kind of torn," he said, adding there's a clear bull and bear thesis for the stock.

On one hand, he said the brand has a "popular concept" and has pivoted toward profitability over the past year, with net income of $242 million in the first half of the year, according to the company's second-quarter earnings report.

But Instacart's turn toward profitability means its growth has slowed, Cramer said. Its revenue increased 15% in the second quarter, down from 40% growth in the year-earlier period, CNBC reported.

Cramer said he wonders whether there's some "window dressing" in the company's pivot to profitability, that it has the wherewithal to sustain growth like it did before the IPO. He added he's also not sure if the company is indispensable to the grocery market, wondering if large chains could simply create their own digital ordering systems.

"Instacart's got a good brand name, but it's hard for me to get super excited about it at these levels," Cramer said. "If you love the story, though, you've got my blessing to put on a small position here, but personally, down 10 to 15% is where I would like to buy it."

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