Instacart (CART): Valuation Perspective Following New Storefront Upgrades and Mesa Partnership

Maplebear (NasdaqGS:CART) recently expanded its business solutions with new capabilities on the Storefront and Storefront Pro platforms. The company also partnered with Mesa to provide its members complimentary Instacart+ subscriptions. These steps emphasize Instacart’s strategy to serve a wider mix of customers and strengthen its competitive position.

See our latest analysis for Maplebear.

Maplebear’s recent partnerships and feature rollouts arrive at a time when momentum is still searching for a floor. The share price return over the past year sits at -11.44%, reflecting fading enthusiasm after earlier gains. Short-term slips, like the 6.14% one-month share price return, reinforce that investors are reassessing growth potential in light of evolving competitive pressures and new customer segments.

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But with Instacart’s share price lagging and growth initiatives in the spotlight, investors may wonder whether the current valuation represents a discount for those willing to wait, or if the market has already priced in all future gains.

Most Popular Narrative: 31.4% Undervalued

Maplebear’s narrative-inspired fair value estimate stands well above its recent close, suggesting potential upside if ambitious projections are realized. The latest analysis focuses on digital channels, AI, and aggressive margin expansion as key drivers behind the price target.

Deepening enterprise partnerships and a growing suite of omnichannel retailer integrations (such as Storefront, Carrot Ads, Caper Carts, Carrot Tags) are increasing stickiness with major retail chains. This is creating new recurring revenue streams and driving higher-margin, non-transaction-based revenues (such as advertising and in-store tech), making the business model less volatile and supporting sustainable margin expansion and earnings resilience.

Read the complete narrative.

What bold financial assumptions underpin this bullish fair value? Hints: analysts expect new profit highs, expanding margins, and a valuation multiple higher than industry norms. Click to discover what’s fueling such confidence and why some may consider these projections out of reach.

Result: Fair Value of $56.81 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising labor costs and intensifying competition could pressure Instacart’s margins. This could potentially challenge the upbeat outlook reflected in analyst valuations.

Find out about the key risks to this Maplebear narrative.

Build Your Own Maplebear Narrative

If you have a different perspective or want to dig into the numbers yourself, you can shape your own Maplebear story in just minutes: Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Maplebear.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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