Instacart Stock Rises On Strength in Orders, Advertising

Dow Jones
2025/05/03

By Roshan Fernandez

Shares of Instacart climbed with analysts pointing to its strength in orders and advertising.

The retail delivery company's stock climbed 13% to $45.09 during Friday's trading. The stock is up about 8.8% year to date.

The San Francisco-based company on Thursday reported a 14% increase in orders year-over-year, the fastest growth in the last 10 quarters, analysts from KeyBanc said in a report.

"Instacart is seeing momentum in orders, which we believe reflects a combination of restaurant orders and reduced free delivery thresholds for Instacart+ subscribers," KeyBanc analysts wrote.

The company said it lowered basket minimums for Instacart+ members to $10.

Chief Executive Fidji Simo said the company is seeing increased order frequency, though that is not cannibalizing larger grocery orders. The company said it is not currently seeing a macro-economic impact on the transaction part of its business.

"Even though macro uncertainty remains, we have not seen any unexpected changes in consumer behavior through April," Simo said.

Instacart also said some brands are citing caution related to tariffs and potential regulation changes, which could affect advertising sales moving forward. The company reported 14% growth year-over-year in advertising and other revenue.

"CART's advertising stars were (finally) all aligned in 1Q," analysts from Benchmark wrote in a report.

Write to Roshan Fernandez at roshan.fernandez@wsj.com

 

(END) Dow Jones Newswires

May 02, 2025 14:22 ET (18:22 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

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