Instacart, Inc. (Maplebear Inc.) saw its shares plunge 8.55% in the after-hours trading session on Tuesday, despite reporting better-than-expected earnings for the fourth quarter of fiscal 2024.

The online grocery delivery and pick-up service provider reported quarterly earnings per share (EPS) of $0.53, surpassing the FactSet consensus estimate of $0.38. However, the market seemed to have reacted negatively to some other factors, leading to the significant after-hours decline.

According to analysts, while Instacart's growth potential remains promising, concerns over its competitive valuation and the intensifying competition in the online grocery delivery space may have weighed on investor sentiment. Bank of America Securities reiterated a "Neutral" rating on the stock, citing these challenges despite the company's strong performance.