DASH Stock Rockets After DoorDash Announces $17B Instacart Acquisition, Reports Upbeat Q3

• The companies expect to close the transaction in late 2027 or the first half of 2028, subject to approvals.
• DoorDash reported 993 million total orders, up 28% year-over-year, while Marketplace GOV increased 36% to $33.94 billion.
• DoorDash’s third-quarter revenue rose 34% year-over-year to $4.62 billion, while adjusted EBITDA climbed 41% to $1.06 billion.

DoorDash (DASH) shares surged on Thursday after the company announced an agreement to acquire Instacart (CART) in a deal valued at approximately $17 billion, and also reported its third-quarter results that beat analyst estimates.

“Grocery is one of the hardest things to get right online,” DoorDash CEO Tony Xu stated. “Together, we could give stores of every size more of those tools and unlock the potential of grocery delivery.”

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DASH shares traded 6% higher, while CART shares traded marginally higher at the time of writing.

DoorDash-Instacart Deal

DoorDash will acquire Instacart for $65 per share, a 26% premium to Instacart’s October 22 closing price. At least 75% of the consideration will be paid in cash, with DoorDash stock not to exceed 25% of the total consideration. Instacart’s board unanimously approved the deal.

The company expects the acquisition to generate at least $500 million in annual synergies, net of investments, over multiple years. The company expects to invest more than 100% of total synergies in the first year after closing, with positive net synergies from the second year onward.

The transaction is expected to close in late 2027 or the first half of 2028, subject to Instacart shareholder approval and regulatory clearances, including in Canada and Israel. DoorDash expects to fund the cash portion through cash on hand and debt financing. The deal is not subject to a financing condition.

The companies expect the combination to expand consumer choice, improve grocery delivery speeds and lower fulfillment costs. DoorDash also expects to create more earning opportunities for Dashers and Instacart Shoppers.

Q3 Results At A Glance

DoorDash reported third-quarter revenue of $4.61 billion, up 34% year-over-year and above analyst estimate of $4.56 billion, according to data compiled by Fiscal.A.I. 

Diluted earnings-per-share (EPS) came in at $1.06, above the $0.82 analyst consensus reported by Investing.com.

Net income attributable to common stockholders rose 91% to $466 million, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased 41% to $1.06 billion. Total orders climbed 28% to 993 million, and Marketplace gross order value (GOV) rose 36% to $33.941 billion.

Deliveroo’s acquisition contributed to reported growth. Excluding Deliveroo, orders increased 17% year-over-year, while revenue and Marketplace GOV each grew 23%.

DASH’s Q4 Outlook

DoorDash expects fourth-quarter Marketplace GOV of $35.4 billion to $36.4 billion and adjusted EBITDA of $900 million to $1.1 billion.

For 2026, the company expects approximately $1.2 billion in stock-based compensation expense and $1.2 billion in depreciation and amortization, including about $450 million in amortization of acquired intangible assets. DoorDash also expects year-end merchant-payment timing to reduce reported 2026 free cash flow by $700 million to $800 million.

Third-quarter free cash flow rose 9% year-over-year to $787 million.

How Retail Views DASH

On Stocktwits, retail sentiment toward the stock has turned ‘extremely bullish’ from 'bullish’ over the past 24 hours. While message volumes stayed ‘high’.

DASH shares have dropped over 22% year-to-date.

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