+5.61% to $179.00 from $169.49
What moved DASH
- DoorDash will acquire Maplebear, Instacart’s parent, at $65.00 per share, valuing the deal at roughly $17 billion in equity value; Instacart’s board unanimously approved the agreement.
- The $65 price represents a 26% premium to Instacart’s October 22 closing price, the last trading day before media reports of a possible deal surfaced.
- Consideration will be at least 75% cash; shareholders can elect cash, DoorDash stock, or a mix, with stock capped at 25% of the total, and DoorDash secured a bridge loan commitment from JPMorgan to help fund the cash portion.
- DoorDash shares rose roughly 7% in premarket trading on the announcement.
Sources: SEC filing (DoorDash 8-K) · CNBC
-6.10% to $168.44 from $179.38
What moved DASH
- The Wall Street Journal reported DoorDash is in advanced talks to acquire Instacart, citing people familiar with the matter, and said a deal could be finalized within the week, though talks could still fall apart.
- The report said DoorDash’s separate talks to combine with Uber on an Instacart deal are no longer active, after Uber had reportedly walked away from discussions.
- The talks follow an earlier report that Instacart was exploring a sale and had held preliminary discussions with potential buyers including Uber and DoorDash, with a typical takeover premium implying a valuation of roughly $16 billion to $17 billion.
- Any combination would likely face antitrust scrutiny given the companies’ overlapping grocery-delivery businesses; earlier 2021 talks between the two collapsed partly over regulatory concerns.
Sources: The Wall Street Journal · Bloomberg · The Information · TechCrunch
+2.42% to $207.27 from $202.37
What moved DASH
- Q2 revenue rose 35.6% year-over-year to $4.45 billion, above the $4.35 billion estimate; adjusted EBITDA of $914 million beat the $842.3 million estimate.
- GAAP EPS of $0.46 came in slightly below the analyst consensus.
- Third-quarter gross order value guidance of $33 billion-$34 billion topped the $32.64 billion analyst forecast.
- Adjusted EPS guidance of $7.60-$7.90 for the third quarter fell well short of the $8.86 analysts had expected, pressuring shares.
Sources: StockStory · Yahoo Finance · Investing.com