Instacart (CART) popped to ~$51 after strong earnings but sold off fast when Amazon announced a grocery delivery push. Investors fear Amazon could undercut prices and steal market share.
History shows Amazon plays two games:
Direct competition when they have home-field advantage (very possible here in the U.S.).
Partnerships when a rival has unique reach or relationships (e.g., Grubhub, Knuspr in Germany).
CART’s drop reflects the “Amazon as competitor” fear — but if a partnership or integration ever happens, the stock could quickly re-rate higher.
Key Levels:
Support: $39–$40 zone from prior consolidation
Resistance: $46–$48 short-term, then $54 if bullish catalyst hits
Trade Ideas:
Swing long on dip: Buy near $39–$40 for a bounce toward $46+
Momentum long: If partnership/integration news hits, target $54+
Short bounces: If Amazon doubles down on direct competition, fade rallies into $46–$48
Risk:
Very headline-driven — a single Amazon or retailer announcement could move CART 10%+ in a day.
History shows Amazon plays two games:
Direct competition when they have home-field advantage (very possible here in the U.S.).
Partnerships when a rival has unique reach or relationships (e.g., Grubhub, Knuspr in Germany).
CART’s drop reflects the “Amazon as competitor” fear — but if a partnership or integration ever happens, the stock could quickly re-rate higher.
Key Levels:
Support: $39–$40 zone from prior consolidation
Resistance: $46–$48 short-term, then $54 if bullish catalyst hits
Trade Ideas:
Swing long on dip: Buy near $39–$40 for a bounce toward $46+
Momentum long: If partnership/integration news hits, target $54+
Short bounces: If Amazon doubles down on direct competition, fade rallies into $46–$48
Risk:
Very headline-driven — a single Amazon or retailer announcement could move CART 10%+ in a day.
Note
Price went down to 39 USD. Re-rating and analyst adjustments ending? I think the price will consolidate here for a couple of weeks, and if the consumer index shows good numbers, then we can open call options and hold them through the next earnings report.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.