Maplebear Inc.

Maplebear Inc. (NASDAQ: CART), operating under the name Instacart, offers internet-based grocery shopping solutions to residences across North America. The firm links customers with a dedicated shopper who selects and delivers various items, including groceries, alcoholic beverages, personal health products, pet care items, prepared meals, and more. These services are accessible through a mobile app or website.

Recent Financial and Business Updates:

• IPO Pricing:
  • "Instacart" announced the pricing for its initial public offering (IPO), which consisted of 22,000,000 shares of its common stock. Of these, 14,100,000 shares were being sold by Instacart, while 7,900,000 shares were being sold by specific selling stockholders.
  • The public offering price per share was set at USD30.00 and Instacart will not receive any proceeds from the sale of shares by the selling stockholders.
  • Instacart had granted the underwriters a 30-day option to purchase up to an additional 3,300,000 shares of its common stock at the IPO price, after deducting underwriting discounts and commissions.
• IPO Summary:
  • The shares commenced trading on the Nasdaq Global Select Market on September 19, 2023, using the symbol "CART."
  • Goldman Sachs & Co. LLC and J.P. Morgan were serving as the primary book-running managers for the offering.
  • BofA Securities, Barclays, and Citigroup are participating as additional book-running managers. In addition, Baird, JMP Securities (A Citizens Company), LionTree, Oppenheimer & Co., Piper Sandler, SoFi, Stifel, Wedbush Securities, Blaylock Van, LLC, Drexel Hamilton, Loop Capital Markets, R. Seelaus & Co., LLC, Ramirez & Co., Inc., Stern, and Tigress Financial Partners are all acting as co-managers for the offering.
  • The company plans to utilize the net proceeds obtained from the offering, in conjunction with its existing cash reserves to cover all the expected tax withholding and remittance responsibilities linked to settling specific outstanding RSUs, buying back and nullifying shares of restricted stock linked to the vesting of such restricted stock as part of this offering, and the net exercise of specific outstanding stock options.
• 2022 Income Statement Review:
  • The Gross Transaction Value (GTV) stood at USD29.4 billion for the year.
  • The gross profit was USD2.2 billion.
  • A total of 263 million orders were placed in the 12 months ended June 30, 2023.
  • The adjusted EBITDA for the year was USD486 million.
  • The typical transaction revenue per order amounted to roughly USD7, accounting for approximately 6.3% of the Gross Transaction Value.
  • In the year, the average advertising and other revenue per order stood at approximately USD3, constituting about 2.6% of GTV.
  • The mean gross profit per order for 2022 was approximately USD7, making up around 6.4% of GTV.

As per the above-mentioned information, recent key business and financial updates, a “WATCH” rating is recommended for Maplebear Inc. (NASDAQ: CART) based on the current price of USD 26.90 as on October 03, 2023, at 07:50 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is October 03, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.