DoorDash Inc. (NASDAQ:DASH) shares are in the spotlight Tuesday, with a report that it is in advanced talks to acquire Instacart parent Maplebear Inc. (NASDAQ:CART) and third-quarter earnings on deck.
DoorDash Is in Advanced Talks to Buy Instacart Parent Maplebear for About $17B
According to Bloomberg, which cited people familiar with the matter, DoorDash is in advanced talks to acquire Maplebear for roughly $17 billion, and a deal could be announced as soon as this week. Bloomberg said no final decision has been made and the discussions could fall through. The Wall Street Journal first reported the talks. Representatives for DoorDash and Maplebear didn't immediately respond to requests for comment. Maplebear shares rose 7.9% to close at $60.88 on Monday, giving the company a market value of about $14.1 billion, while DoorDash fell 6.1% to close at $168.44, for a market value of about $73 billion. The talks come amid intensifying competition in grocery delivery. Instacart previously held talks about selling itself to Uber Technologies Inc. (NYSE:UBER), Bloomberg has reported.
Earnings Preview & History
DoorDash is scheduled to report third-quarter earnings on Nov. 4 after the market closes. Analysts estimate earnings per share of 84 cents and revenue of $4.56 billion. For the prior quarter, DoorDash reported earnings per share of 46 cents, inline with the consensus estimate. The company also posted revenue of $4.45 billion, up 36% from a year earlier, and beating the consensus estimate of $4.34 billion.
What to Watch: Q3 Guidance, Growth Trends and Deliveroo Integration
Investors will be closely tracking DoorDash's third-quarter guidance, which called for marketplace gross order value of $33.0 billion to $34.0 billion and adjusted EBITDA of $950 million to $1.1 billion, after second-quarter adjusted EBITDA of $914 million came in above the top of its guidance. Growth will be in focus too. Revenue rose 36% in the second quarter, or 24% excluding Deliveroo, and the acquisition begins to lap in the fourth quarter.
DoorDash expects its take rate to stay about flat in the third quarter and decline in the fourth because of seasonal Dasher costs. Any acquisition news would also add to the spending and integration questions investors have around Deliveroo.
DoorDash Shares Trade Flat
DASH Price Action: At the time of publication, DoorDash shares are trading 0.34% lower at $167.87, according to data from Benzinga Pro.