Instacart stock holds steady ahead of earnings as Benchmark maintains rating

Published 04/08/2025, 16:06
Instacart stock holds steady ahead of earnings as Benchmark maintains rating

Investing.com - Benchmark maintained its Hold rating on Instacart (NASDAQ:CART), a $12.26 billion market cap company with a "GREAT" InvestingPro Financial Health score, ahead of the company’s upcoming earnings report scheduled for Thursday, August 7, after market close.

The research firm did not specify a price target in its latest note but indicated it expects Instacart to report second-quarter gross transaction value and total revenue in line with consensus estimates, with Transaction (JO:NTUJ) revenue potentially 1% below consensus and Advertising & Other segment revenue possibly 3% above expectations.

Benchmark’s analysis cited concerning trends from its second annual restaurant and grocery survey, which showed Instacart lost 4 percentage points of market share among frequently used grocery delivery platforms year-over-year in June, along with a 2 percentage point decline in restaurant order share during the same period.

The firm also noted that Instacart showed the lowest indications for grocery and convenience order rates for the second half of 2025 compared to competitors, suggesting potential growth challenges ahead.

On a positive note, Benchmark highlighted that Instacart’s convenience market share increased by 4 percentage points year-over-year to 13%, supporting the company’s recent decision to reduce minimum basket thresholds to drive market share gains, while also mentioning recent advertising partnerships with The Trade Desk (NASDAQ:TTD), Uber (NYSE:UBER), and YouTube as potential areas of interest in the upcoming earnings call.

In other recent news, Instacart has announced a significant leadership change with Chris Rogers set to become the new CEO and President on August 15. This transition follows the departure of current CEO Fidji Simo, who will assume a leadership role at OpenAI. Rogers, who has been with Instacart since 2019, has played a crucial role in managing the company’s retail partnerships and advertising sales. Meanwhile, Citi analysts have maintained their Buy rating for Instacart, with a price target of $57, reflecting confidence in Rogers’ leadership capabilities.

Additionally, Bernstein has raised its price target for Instacart to $60, citing potential growth in advertising and a positive outlook on the company’s valuation. The firm also highlighted the importance of Instacart’s third-quarter gross transaction value guidance. Citizens JMP continues to support Instacart with a Market Outperform rating and a $55 price target, emphasizing the company’s strategic partnerships with OpenAI, YouTube, and TikTok. Citizens JMP also notes the company’s efficient order density, which enhances its unit economics for small basket orders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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