CART Should I Buy
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Maplebear Inc (CART) is not a strong buy at the moment for a beginner investor with a long-term strategy. While there are some positive catalysts such as hedge fund buying and strategic investments, the financial performance shows declining profitability metrics, and technical indicators suggest no clear upward momentum. Additionally, competition concerns and mixed analyst ratings make this stock a hold rather than a buy.
The MACD is positive but contracting, RSI is neutral at 48.91, and moving averages are converging, indicating no clear trend. The stock is trading near its pivot level of 36.768 with resistance at 38.415 and support at 35.122. Technical indicators suggest a lack of strong momentum in either direction.
Hedge funds are significantly increasing their positions in CART, with a 177.13% increase in buying over the last quarter. The company also announced a $180 million strategic investment led by Spring Coast Partners, which could support future growth initiatives.
The company is under investigation for potential breaches of fiduciary duties and faces a $60 million FTC penalty for false advertising. Additionally, competition from major players like DoorDash, Uber, and Amazon remains a significant overhang, as noted by analysts.
In Q4 2025, revenue grew by 12.34% YoY to $992 million, but net income dropped by 43.23% YoY to $88 million. EPS declined by 48.08% YoY to 0.27, and gross margin fell by 3.09% to 65.52%. These metrics indicate declining profitability despite revenue growth.
Analyst ratings are mixed. While firms like BMO Capital and Benchmark raised their price targets to $60 and $55 respectively, others like Wells Fargo and Cantor Fitzgerald lowered their targets to $43 and $47, citing competition concerns and margin pressures. The consensus reflects cautious optimism but highlights significant risks.
