What Happened?
Shares of online grocery delivery platform Instacart (NASDAQ: CART) fell 3.3% in the afternoon session after investor concerns grew over increased competition as grocery giant Kroger launched its delivery service on the Uber Eats and Postmates apps. The partnership expanded Kroger's delivery options across nearly 2,700 of its stores nationwide, including banners like Ralphs and Fred Meyer. This development placed Kroger's full range of products in direct competition with Instacart on major on-demand delivery platforms. The stock's decline to a near two-month low reflected worries that this new, convenient option for shoppers could chip away at Instacart's market share.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Instacart? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Instacart’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 24 days ago when the stock dropped 2.2% on the news that the company announced it would end a controversial pricing program and separately agreed to a $60 million settlement with the Federal Trade Commission (FTC).
The pricing program used an AI-powered tool that allowed retailers to show different prices for the same item to different customers. This practice was halted after a report from consumer advocacy groups sparked backlash and an FTC investigation. Separately, the $60 million settlement resolved allegations that Instacart engaged in deceptive practices. The FTC had accused the company of falsely advertising free deliveries while still charging mandatory service fees, and of enrolling customers into its paid membership program without their informed consent. These events raised concerns about the company's business practices and customer trust.
Instacart is down 10.3% since the beginning of the year, and at $39.40 per share, it is trading 25.9% below its 52-week high of $53.15 from February 2025. Investors who bought $1,000 worth of Instacart’s shares at the IPO in September 2023 would now be looking at an investment worth $1,169.
Microsoft, Alphabet, Coca-Cola, Monster Beverage—all began as under-the-radar growth stories riding a massive trend. We’ve identified the next one: a profitable AI semiconductor play Wall Street is still overlooking.Go here for access to our full report, it’s free.
