Who Is Tony Xu?

DoorDash (DASH) reported record Q3 revenue and profit, and agreed to buy Instacart (CART) for $17B. Bank of America cut its price target to $257 (44% upside) but maintained a Buy rating. The stock is down 33% year-over-year, trading at 25x forward earnings, its lowest in five years.

DoorDash agreed to acquire Instacart for $17 billion, subject to regulatory approval. The companies stated the deal would create a larger platform for advertisers, offering cross-selling opportunities and a broader reach.

DoorDash reported 3Q 2026 revenue of $4.62B, net income of $466M, and EPS of $1.06, up 34%, 91%, and 92.7% YoY. Growth driven by Marketplace gross order value and Deliveroo acquisition. Net revenue margin was 13.6%.

DoorDash's $17B acquisition of Instacart may face extensive US antitrust reviews. Regulators are concerned about potential competition reduction and price increases in food delivery. The merger is expected to draw scrutiny from both federal and state authorities.

DoorDash announced a $17 billion acquisition of Instacart, citing benefits for consumers, drivers, and retailers. Analysts suggest the deal may reduce consumer choice, increase membership fees, and lower driver pay. Shareholders are expected to benefit from cost synergies and reduced competition. The companies will likely consolidate operations despite initial claims of maintaining separate brands.

Wedbush upgraded DoorDash (DASH) to 'Outperform' and raised its price target to $230, citing strong Q3 results and the Instacart acquisition. Wells Fargo lowered its target to $200, noting mixed views on the deal. Both stocks saw high retail sentiment, with DASH down 22% and CART up 22% year-to-date.