Staying Short Instacart (Maplebear)

$CART

I’m admittedly negatively biased towards Instacart for fundamentals reasons. Just go check out the subreddits that contain snapshots of what they’re paying drivers. Something just doesn’t add up there.

Stock is down about 8.50% early on today after the company’s earnings report. They’re laying people off, buying back stock, and “expect to be” GAAP profitable.

Nonetheless, I don’t carry my biases into a trade.

Not coincidentally, the stock was pushed up into the AVWAP from IPO in the days up to the earnings release, and subsequently failed. I’m short this one via spreads against that AVWAP (meaning - I’m writing calls and collecting income as long as price remains below the turquoise AVWAP line above). There’s no reason to be constructive this name until it demonstrates an ability to hurdle that level.