Search
EN Down
Language
Hi, user_no_name
Live Chat

Instacart stock

 

Better-than-expected results in Q3 do little to support Instacart stock 

Grocery-delivery platform Instacart revealed a nearly $2 billion loss in its initial earnings report since its IPO. Despite the substantial loss, the company exceeded sales expectations, reporting a 14% increase in revenue to $764 million in the third quarter. The firm’s net loss amounted to $1.99 billion, or $20.86 per share, primarily attributed to significantly heightened stock-based compensation during the initial public offering (IPO).

While analysts anticipated a GAAP per-share loss of $15.07 cents and sales of $737 million, Instacart's report differed. The company anticipates "mid-single-digit" growth in gross transaction value, indicating the total value of products sold.

In a letter to shareholders, the company wrote:

“We are confident in our position, even as several macroeconomic factors work against the online grocery industry: COVID is no longer a tailwind, consumers are receiving less government aid, interest rates remain high and inflation persists.”

“Given our substantially larger scale, these headwinds impact us more than smaller, new entrants,” it said. “While we expect these and other factors to continue to dampen our current and near-term growth, they do not change our long-term view on online grocery adoption or our competitive advantages.”

 

Choose your points of movement

Сalculate your hypothetical P/L (aggregated cost and charges) if you had opened a trade today.

Market

Shares Search
Shares
Index
Commodity
Bonds
Crypto
ETFs
Currency

Instrument

Search
Clear input
Occidental
Prosus N.V.
Porsche AG
Hermes
CAT
Thermo Fisher
Nikola Corporation
Tilray
Shell plc (LSE)
Skillz Inc
Iberdrola
DeltaAir
CrowdStrike Holdings
Golar LNG
Applied Materials
Snowflake
Royal Bank Canada
Amazon.com
Spotify
Exxon Mobil
CCB (Asia)
McDonald's
Campari
GameStop
Netflix
ON Semiconductor
Costco
Dave & Buster's
Delivery Hero SE
LUCID
Continental
SunPower
Zoom Video Communications
Schlumberger
Virgin Galactic
Upwork Inc.
Cameco
JP Morgan
Fuelcell
Rivian Automotive
XPeng Inc
Wal-Mart Stores
Trade Desk
Blackstone
Vodafone
Aptiv PLC
L'Oreal
Target
Rio Tinto
Sartorius AG
British American Tobacco
Qorvo
ASOS
Cisco Systems
Nel ASA
Arista
Airbus
Apple
Pfizer
AMC Entertainment Holdings
ASML
Hubspot
Teladoc
Starbucks
SMCI
Canopy Growth
Wish.com Inc
Lockheed Martin
ProSiebenSat.1
IAG
AbbVie
Marston's
Baidu
Teleperformance
Norwegian Air Shuttle
Airbus Group SE
HSBC HK
Block
Annaly Capital
Abbott
LVMH
American Express
Novavax
GoPro
Siemens
Total
SIG
Pinterest Inc
Taiwan Semi
Etsy
Amgen
SONY
3D Systems
UPS
Yandex
BlackBerry
Gen Digital Inc
Xiaomi
Quanta Services
Unity Software
NVIDIA
Anglo American
Palantir Technologies Inc
Fresnillo
Deere
Rolls-Royce
Porsche
Uber
Vir Biotechnology
American Airlines
ROBLOX Corp
Macy's
FirstRand
easyJet
DISNEY
Aurora Cannabis Inc
BP
Adidas
Boeing Co
Vonovia
Coca-Cola Co (NYSE)
Home Depot
General Electric
Coinbase Inc
ALIBABA HK
Philip Morris
General Motors
PayPal
UniCredit
II-VI
BASF
Kraft Heinz
Alphabet (Google)
Palo Alto Networks
Evraz
Plug Power
Li Auto
Oracle
Roku Inc
UiPath Inc
Upstart Holdings Inc
F5 Networks
Infinera
Inditex
ZIM Integrated Shipping Services Ltd
Deutsche Bank
Hammerson
IBM
JD.com
Barrick Gold
Lemonade
MerckCo USA
Infosys
Invesco Mortgage
Comcast
Santander
Accenture
Anheuser-Busch Inbev
Visa
Mastercard
Ozon
T-Mobile
SAP
Wayfair
Beyond Meat
Kuaishou
CarMax
Tesla
Lyft
Medtronic
Adobe
Morgan Stanley
Workday Inc
Blackrock
Vipshop
Meta (Formerly Facebook)
Linde PLC
Micron
Lululemon
Ceconomy
Chipotle
Gilead
Naspers
Bristol Myers
The Cheesecake Factory
Glencore plc
British American Tobacco
ChargePoint Holdings Inc
Twilio
Intel
Lloyds
CNOOC
Electrolux
Wells Fargo
Sea
PG&E
Fedex
Citigroup
Peloton Interactive Inc.
eBay
Microsoft
JnJ
Bilibili Inc
Trump Media & Technology Group
AIA
Nasdaq
Air France-KLM
Allianz
Lithium Americas Corp
Procter & Gamble
Qualcomm
AMD
New Oriental
MercadoLibre.com
Mondelez
Lumentum Holdings
Two Harbors Investment aration
AstraZeneca
Norwegian Cruise Line
Unilever
GoHealth
PepsiCo
Barclays
PETROCHINA
Goldman Sachs
Eli Lilly
HSBC
Cellnex
Berkshire Hathaway
Jumia Technologies
HDFC Bank
RTX Corp
Bayer
Bank of America
Chevron
ADT
DoorDash
Marriott
Nike
AT&T
GSX Techedu
Robinhood
Telecom Italia
Deliveroo Holdings
TUI
Freeport McMoRan
Toyota
BioNTech
Airbnb Inc
Alibaba
Verizon
Nio
Eni
Ford
Hanesbrands
Volkswagen
UnitedHealth
Shopify
China Life
Snap
Christian Dior
Conoco Phillips
Lufthansa
Tencent
Moderna Inc
Salesforce.com
Broadcom
Diageo
Toro
Cinemark

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down
$-

Value

$-

Commission

$-

Spread

-

Leverage

-

Conversion Fee

$-

Required Margin

$-

Overnight Swaps

$-
Start Trading

Past performance is not a reliable indicator of future results.

All positions on instruments denominated in a currency that is different from your account currency, will be subject to a conversion fee at the position exit as well.

 

Instacart stock performance: CART shares down close to 20% since September debut

Despite the positive sales outlook, Instacart's stock performance has been less than stellar this week, with shares slipping in after-hours trading on Wednesday. The company, officially known as Maplebear Inc., released its earnings amid a stock price that remains below its September trading debut, as investors remain hesitant towards IPOs.

In its IPO documents, Instacart outlined a future vision of increased online orders for groceries and essential items. However, customer orders in the first half of the year did not see a significant surge, and elevated grocery prices tempered demand. Additionally, the company faces stiff competition in the food

delivery sector from major players like Walmart, Target, and DoorDash, which has expanded its services to include grocery delivery. Instacart heavily relies on its top three customers to drive demand. Since its September debut, Instacart shares have declined by 19.9%.

 

What is Instacart?

Founded in 2012 and having gone public in September this year, Instacart has joined a cohort of gig economy companies in the public market. The move followed the earlier IPOs of online homestay marketplace Airbnb and online food order and delivery firm DoorDash in 2020, as well as ride-sharing companies Uber and Lyft the year before.

Instacart dispatches personal shoppers to grocery stores on behalf of its clients, who use a mobile app to make their grocery selections and place their orders. The company’s services are available in more than 5,500 cities, serving over 40,000 grocers and other retail stores, as stated on its website. The firm experienced significant growth during the COVID-19 pandemic, as consumers opted for home delivery to avoid public places. However, like many players in the gig economy, profitability has consistently posed a significant challenge for Instacart, due to the high costs associated with compensating a large pool of contractors.

Prior to the firm’s IPO, analysts at Evercore noted that Instacart held close to 22% of the $132 billion U.S. online grocery-delivery market. However, increased grocery prices have had an impact on demand. In the first half of 2023, the company processed a total of 132.9 million customer orders — a slight step up from the 132.3 million orders during the same period the previous year.

 

Instacart stock price forecast: Majority of analysts moderately bullish on CART

In a recent interview with CNBC’s The Exchange, NYU Stern School of Business professor Aswath Damodaran said that he “assumes” Instacart will maintain its market share in the foreseeable future — but only by cutting fees. In a more long-term Instacart forecast, Damodaran said he sees the firm potentially tripling its revenues over the next decade and operating margins to rise to 23% over the next year, and 25% over the next four years.

Instacart's stock maintains an average Moderate Buy rating, as per 15 Wall Street analysts surveyed by TipRanks who have provided 12-month price targets for CART in the past three months.

The average Instacart stock price target stands at $36.00, implying a 45.34% upside, with a high forecast of $48.00 and a low forecast of $28.00.

At the time of writing on Friday, Instacart shares traded at $24.80, up 1.27% on the day, according to MarketWatch data. Instacart stock has declined over 3% in the past month. When considering shares for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.

Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.

Latest news

Investors move on small cap stocks as June US inflation unexpectedly soft

Friday, 12 July 2024

Indices

Investors rotate into small caps on soft June US inflation

US earnings season kicks off, ECB expected to hold rates steady

Thursday, 11 July 2024

Indices

Week ahead: US earnings season kicks off, ECB hold expected

Bank of England policymakers suggest BoE may not cut rates in August

Thursday, 11 July 2024

Indices

Bitter pill for Bank of England August rate cut bets

exchange traded fund etf business financial

Wednesday, 10 July 2024

Indices

10 Active ETFs in 2024

Live Chat