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Maplebear Inc. (NASDAQ:CART): A Stock Worthy of a Shopping Spree

We came across a bullish thesis on Maplebear Inc. (NASDAQ:CART) on ValueInvestorsClub by HonkyRed. In this article, we will summarize the bulls’ thesis on CART. The company’s shares were trading at $44.00 when this thesis was published, vs. the closing price of $41.09 on Feb 28.

A customer shopping for lifestyle and beauty products at a physical store.

CART engages in the provision of online grocery shopping services to households in North America. It sells and delivers grocery products, as well as pickup services through a mobile application and website. Many investors are concerned over the losing market share to players like DoorDash and Uber but CART is strongly positioned, capturing 70% of the pure-play grocery and large basket ($75) segments. In contrast, DoorDash and Uber have a smaller basket size and unfavorable unit economics that often turn negative.

The penetration of online grocery is at a low level of 14% with CART being a recognized player in this segment, having 12 years of experience. At its peak, it commanded a market share of 24% vs. 19% now. It captures the third largest market share, trailing behind Walmart (34%) and Amazon (24%).

The financial performance of CART has also been improving since its IPO launch. The markup to customers has been pegged at 10% and profitability has been enhanced by reducing headcount by 7% in 2024. EBITDA margin stood at 26%, a significant improvement from 7% two years ago. EBITDA grew by 35%+ this year, with an 80% conversion to free cash flows. The Advertising business is a growth driver for CART, contributing to 1/3rd of its revenues. The balance sheet is also robust with almost no debt and 10% of capitalization in cash even after $1.4 billion in buybacks.

The valuation can be based on mid-teen growth in EBITDA (half its current growth rate) with a 7% FCF yield on a cash flow of projected cash flow of $1.1 billion. This should provide a fair value of $59 for the stock price providing room for 44% growth in value from its current level. The 12-month trailing earnings multiple is also very undervalued at 3.89x.

While we acknowledge the potential of CART as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CART but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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