PomegraDoorDash Stock Jumps 9% Premarket After Instacart Deal
Why is DoorDash stock up today?
DoorDash (DASH) stock jumped more than 9% in Thursday premarket trading after agreeing to buy Instacart for $17 billion, or $65 a share, a deal paired with stronger-than-expected quarterly results.
Key numbers
| Deal value (equity) | $17B$65 a share, 26% premium |
|---|---|
| DASH premarket move | +9%Reuters cited about +6% earlier in trading [4] |
| DoorDash Q3 revenue | $4.6B+34% YoY |
| Instacart Q3 revenue | $1.095B+17% YoY |
| Share of price paid in cash | 75%+stock portion capped at 25% |
| DoorDash break fee (per [4]) | $1.25Bowed to Instacart in some cases |
What happened
DoorDash (DASH) stock jumped more than 9% in Thursday premarket trading after agreeing to buy Instacart for $17 billion, or $65 a share, a deal paired with stronger-than-expected quarterly results. At least 75% of the price is paid in cash, and the $65 offer is 26% above Instacart's October 22 closing price, before deal talks leaked. DoorDash also reported third-quarter sales up 34% from a year ago, to $4.6 billion. Instacart's sales rose 17% to $1.1 billion. The deal is expected to close in late 2027 or early 2028, after Instacart shareholders vote and antitrust regulators review it.
Why it matters
DoorDash is buying its closest grocery-delivery rival, so one company would run two of the biggest delivery apps in the U.S. DoorDash already handles about two-thirds of U.S. food delivery orders, and customers with both paid memberships would be moved into one. The companies say combined memberships save about $100 million a year. Regulators must approve the deal, and analysts call that the main risk.
Who this affects
- MarketbullishMedium impact
- Positive for DoorDash holders; Instacart holders offered $65 a share.
- CompanymixedMedium impact
- DoorDash gains grocery reach but takes on debt, regulatory risk.
- CompetitorsbearishLow impact
- Uber faces a bigger rival after skipping Instacart talks.
- IndustrymixedMedium impact
- Delivery industry consolidation continues; fewer, larger platforms.
DoorDash vs Uber, Instacart
How we got here
Instacart's last close before deal-talk reports, the base for the 26% premium.
Instacart shares hit a record high near $62 as deal talk spread.
DoorDash and Instacart announce the $17B deal alongside third-quarter results.
What to watch
- Instacart shareholder vote and U.S., Canadian and Israeli antitrust reviews before the deal can close.Late 2027 to H1 2028
- DoorDash fourth-quarter outlook: Marketplace GOV of $35.4B–$36.4B, Adjusted EBITDA of $900M–$1.1B.Q4 2026
- Reaction from regulators and city agencies, after New York City called the deal a 'troubling trend'.2027
Educational content only. Not investment advice.
More briefsAll briefs →
US GDP Grows 3.4% in Q3 as AI Investment Surges
Q3 GDP beat forecasts as September PCE inflation rose to 3.6% year over year, with core at 3.1%.
Oil Slips 1.1% to $114 on Hormuz Mine Reports
Brent crude (BZ=F) eased from $115.32 as Iran's Guards reported more tanker mine hits and a $150 oil threat.
Caterpillar Stock Falls 9% After Unchanged Guidance
Caterpillar (CAT) beat profit forecasts and hit a record $78.1B backlog, but kept its yearly outlook flat.