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Instacart stock falls as profit forecast comes up short - MarketWatch

1. Instacart's forecast for adjusted EBITDA fell below analyst expectations. 2. Shares of Instacart's parent company, Maplebear Inc., dropped 9.8% after hours. 3. Expectations for gross transaction value exceeded estimates, signaling strong demand. 4. Instacart reported earnings of 53 cents per share, surpassing estimates. 5. Online grocery growth significantly outpaces in-store grocery growth, emphasizing digital competition.

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FAQ

Why Bearish?

The significant drop in CART shares indicates market concerns over lowered profit expectations. Historical examples show similar patterns with stock prices reacting negatively to profit forecast misses.

How important is it?

The earnings forecast miss is critical as it shapes investor expectations and sentiment regarding CART's performance, impacting short-term valuations.

Why Short Term?

Investor sentiment based on quarterly forecasting typically impacts stock prices quickly. Market reactions to earnings forecasts often resolve within weeks.

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