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Instacart Downgraded to Sell as Amazon Grocery Expansion Threatens Market Share
Instacart Downgraded to Sell as Amazon Grocery Expansion Threatens Market Share
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BTCCSquare news:
Instacart faces mounting pressure as Amazon aggressively expands its grocery delivery services, directly challenging Instacart's core business. Wedbush analyst Scott Devitt downgraded the stock from Hold to Sell, slashing the price target by 24% to $42. Amazon's same-day delivery for perishables, bundled with Prime membership, poses a significant threat to Instacart's niche.
With 60% of Instacart's gross transaction value tied to members, rivals like DoorDash and Uber are eroding its market share. The company's narrow focus leaves it vulnerable to competitors with broader ecosystems. Devitt warns that shifting consumer preferences toward more attractive subscription services could further dent Instacart's growth and retention.
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