Maplebear (US:CART) Benzinga·2025-02-26 19:18Core Viewpoint - Maplebear Inc (CART), also known as Instacart, reported worse-than-expected fourth-quarter revenue, raising concerns about its growth trajectory and competitive positioning in the market [1]. Group 1: Performance Metrics - Order growth for CART increased by 10.6% in the fourth quarter, marking the second consecutive quarter of growth, driven by higher order frequency [2]. - The company’s Gross Transaction Value (GTV) exceeded expectations, but adjusted EBITDA guidance fell below consensus for the first quarter [4]. - The analyst predicts further growth in the second quarter, continuing the trend of order growth acceleration, before anticipating a slowdown in the second half of 2025 due to tougher year-over-year comparisons [4]. Group 2: Competitive Landscape - CART faces increasing competition from emerging players like DASH and Uber Eats, which have larger network scales and are offering more aggressive discounts [7]. - The company’s strategy to match in-store prices without a significant volume boost may deter grocers from fully utilizing its Marketplace for additional revenue [8]. Group 3: Advertising and Revenue Outlook - The analyst expects advertising revenue to grow faster than GTV for the remainder of 2025, although this suggests a flat investment rate year-over-year [6]. - There is an anticipated decline in the transaction take rate, with a forecasted decrease of approximately 10 basis points year-over-year in 2025 [8]. - Limited expansion in the advertising take rate is expected due to already high penetration among major brand partners [9]. Group 4: Stock Performance - CART shares are currently trading lower by 10.66% at $43.58, reflecting investor concerns regarding the company's growth and competitive challenges [9].