Markets

Instacart Stock Soars 8% To A 52-Week High, Adding $1.1 Billion On Takeover Talk

DoorDash is still named as a possible suitor for the grocery-delivery company after Uber reportedly walked away.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

— 2 min read
Share
Instacart Stock Soars 8% To A 52-Week High, Adding $1.1 Billion On Takeover Talk

Instacart shares climbed 7.87% to $60.88 at Monday's close, a new 52-week high, adding $1.1 billion in market value as coverage of a possible DoorDash takeover circulated. The grocery-delivery marketplace, which does business as Maplebear, now carries a market capitalization of $14.4 billion.

Uber out, DoorDash still in

The Information reported Friday that Instacart hired an investment bank to review strategic options and held preliminary takeover talks with DoorDash and Uber. Bloomberg later reported, citing a person familiar with the matter, that Uber walked away from the discussions. No definitive agreement has been announced.

Citi analyst Ronald Josey noted that a reported sale valued at $16 billion to $17 billion would imply about $65 per share at the midpoint. Citizens raised its price target to $65 from $60.

The stock was on pace for its third straight daily gain and its second gain of 7% or more this month.

Up 26% this year

Instacart makes the technology that lets shoppers order groceries online for delivery or pickup, and helps retailers and brands sell. Its products are the Instacart Marketplace app, the Enterprise platform that powers retailers' own storefronts, and Instacart Ads.

Shares were up about 26% for the year as of Friday's close, against about 11% for the S&P 500, and had risen 31% in the month before Monday's session.

The run followed a second quarter in which revenue grew 14% to $1,043 million, with net income of $111 million, down 4% from a year earlier. Adjusted EBITDA rose 19% to $313 million, and free cash flow climbed 156% to $480 million. The company repurchased $325 million in shares.

Guidance and the next report

For the third quarter, Instacart guided to gross transaction value of $10,300 million to $10,550 million and adjusted EBITDA of $320 million to $340 million. CFO Emily Reuter said the company is "well on track to return the majority of free cash flow to shareholders via share repurchases in 2026."

Instacart is scheduled to report third-quarter results on Thursday, November 5.

Sources

Read more