DoorDash’s $17B Instacart Deal Draws Significant Street Attention – A Look At What Analysts Have To Say

DoorDash (DASH) will acquire Instacart (INST) in a $17 billion deal, valuing Instacart shares at $65 each. The merger aims to combine DoorDash's restaurant delivery network with Instacart's grocery services, potentially improving delivery speed and affordability. The FTC may scrutinize the deal due to concerns over competition and consumer costs.

DoorDash reported that AI agents placed only several hundred orders since launch, despite the company handling 993 million orders in Q3. CEO Tony Xu noted this represents a 'fairly low use case.' DoorDash's Q3 revenue rose 34% to $4.6 billion, with Q4 projections of $35.4B-$36.4B in GOV and $900M-$1.1B in adjusted EBITDA. The company's stock closed at $179.00, up 5.61%, and reached $181.26 after hours, up 1.26%.

DoorDash is acquiring Instacart for $17 billion, combining two major delivery platforms. The deal expands DoorDash's market reach to nearly 150,000 stores. DoorDash shares rose 9% in premarket trading. The acquisition follows a $131.5 million settlement for underpaying workers.

Truist Securities kept its Buy rating on DoorDash and increased its price target to $340 from $336, suggesting an 89.9% upside from the last close. Recent analyst targets for DoorDash range from $205 to $255.

DoorDash agreed to acquire Instacart for $17B, a deal expected to take over a year to finalize. The acquisition will expand Instacart's store selection to 150,000. DoorDash aims to leverage Instacart's grocery expertise, while Instacart plans to accelerate industry innovation. Regulators will review the deal for antitrust concerns.

DoorDash agreed to buy Instacart for $17 billion, with Instacart shareholders to receive $65 per share in cash, DoorDash stock, or a mix. The deal, expected to close by mid-2028, faces regulatory and antitrust reviews. Both companies' boards approved the acquisition, which aims to streamline services and reduce membership fees for customers.