Instacart's (CART, Financial) current CEO, Fidji Simo, is making a significant career move as she prepares to join OpenAI as the CEO of Applications. This transition is set to occur in the coming months. In her new role, she will head a segment responsible for the real-world application of OpenAI’s research, a task she is deemed uniquely qualified for, thanks in part to her experience as an OpenAI board member over the past year.
OpenAI’s CEO, Sam Altman, emphasized that he will maintain his overarching leadership of the company, ensuring cohesive progress across its research, compute, and application sectors, while also collaborating closely with the board to maximize the organization's positive impact. This leadership reshuffle highlights OpenAI’s strategic focus on expanding its application initiatives. Simo's leadership at Instacart (CART, Financial) has been influential, and her move to OpenAI signals a noteworthy shift in executive dynamics.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 27 analysts, the average target price for Maplebear Inc (CART, Financial) is $51.49 with a high estimate of $61.00 and a low estimate of $41.00. The average target implies an upside of 12.59% from the current price of $45.73. More detailed estimate data can be found on the Maplebear Inc (CART) Forecast page.
Based on the consensus recommendation from 34 brokerage firms, Maplebear Inc's (CART, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
CART Key Business Developments
Release Date: May 01, 2025
- Gross Transaction Value (GTV): Grew 10% year-over-year, reaching the top end of guidance.
- Order Growth: Increased by 14% year-over-year, the strongest in 10 quarters.
- Average Order Value: Decreased by 4% year-over-year.
- Transaction Revenue: Grew 8% year-over-year, maintaining 7.1% of GTV.
- Advertising and Other Revenue: Increased by 14% year-over-year.
- GAAP Net Income: $106 million, a decrease of $24 million year-over-year.
- Adjusted EBITDA: $244 million, a 23% increase year-over-year.
- Operating Cash Flow: $298 million, an increase of $193 million year-over-year.
- Share Buyback: $94 million worth of shares repurchased.
- Cash and Similar Assets: Approximately $1.8 billion at quarter-end.
- Q2 GTV Outlook: Expected between $8.85 billion and $9 billion, 8% to 10% growth year-over-year.
- Q2 Adjusted EBITDA Outlook: Expected between $240 million and $250 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Maplebear Inc (CART, Financial) reported a 10% year-over-year growth in Gross Transaction Value (GTV), driven by a 14% increase in orders.
- The company achieved strong advertising revenue growth of 14% year-over-year, outpacing GTV growth.
- Maplebear Inc (CART) has expanded its reach to 98% of households in North America, maintaining consistent customer engagement.
- The acquisition of Wynshop is expected to enhance Maplebear Inc (CART)'s enterprise strategy by powering more storefronts and expanding retailer partnerships.
- The company is leveraging AI to improve operational efficiency, with 87% of its code developed with AI assistance in Q1 2025.
Negative Points
- Average order value decreased by 4% year-over-year due to the addition of restaurant orders and reduced minimum basket size for Instacart+ members.
- GAAP net income decreased by $24 million year-over-year, primarily due to the lapping of stock-based compensation reversals.
- There are concerns from brands about macroeconomic uncertainties, including trade policies and regulations, which could impact advertising spend.
- The company anticipates a sizable step-up in stock-based compensation in Q2 due to the timing of annual refresh grants.
- Despite strong advertising performance, there is potential volatility in brand partners' advertising budgets due to macroeconomic conditions.
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