Maplebear (CART) Plunges 12.8% as Amazon's Grocery Expansion Shakes E-Commerce Giants

Summary
• Maplebear (CART) trades at $44.425, down 12.86% from its $50.98 previous close
• Intraday range spans $44.24 to $46.89, with turnover surging to 14.16 million shares
• Amazon's grocery delivery expansion announcement directly pressures Instacart's parent company
• Sector leader Amazon (AMZN) gains 1.25% as it expands grocery delivery to 2,300 U.S. cities
• CART's 52-week range of $31.99–$53.5 suggests significant downside potential from current levels

Amazon's Grocery Gambit Undermines Instacart's Market Position
Maplebear's (CART) 12.86% intraday plunge is directly tied to Amazon's (AMZN) aggressive expansion into grocery delivery. The e-commerce giant announced plans to expand its grocery delivery to 2,300 U.S. cities by year-end, directly targeting Instacart's core market. This move threatens to erode CART's competitive edge in on-demand grocery delivery, as Amazon leverages its Prime subscriber base and infrastructure to undercut pricing. The news triggered immediate investor skepticism, with shares of the Internet Retail sector's second-largest player collapsing to 44.425, below its 200-day moving average of 44.56. The 6.89% turnover rate indicates significant institutional selling pressure as investors reassess the stock's fundamentals.

Internet Retail Sector Splits as Amazon Gains, Maplebear Loses
While Amazon (AMZN) leads the Internet Retail sector with a 1.25% intraday gain, Maplebear (CART) faces existential pressure from its largest competitor. The sector's mixed performance highlights divergent strategies: Amazon's grocery expansion aims to capture $1.5 trillion in annual U.S. grocery spending, while CART's reliance on third-party delivery networks appears vulnerable. Walmart (WMT) and Kroger (KR) also face headwinds, down 1% and 4% respectively, as the sector grapples with Amazon's pricing power. This divergence underscores the sector's structural shift toward vertically integrated logistics models.

Options and Technicals: Navigating CART's Volatile Crossroads
• 200-day average: 44.56 (below) • RSI: 54.63 (neutral) • MACD: 0.92 (bullish) • Bollinger Bands: 45.86–51.72 (bearish bias)
• CART is trading near its 200-day support range of 43.53–43.85, with key resistance at 48.79 (middle Bollinger Band). The 54.63 RSI suggests oversold conditions, but the 0.92 MACD histogram indicates waning bullish momentum. With 6.89% turnover, liquidity remains robust for options trading.
• Top Option 1: CART20250822C45 (Call) • Strike: 45 • Expiry: 2025-08-22 • IV: 39.62% • Leverage: 49.29% • Delta: 0.434 • Theta: -0.136 • Gamma: 0.135 • Turnover: 22,972
• Top Option 2: CART20250822C45.5 (Call) • Strike: 45.5 • Expiry: 2025-08-22 • IV: 37.37% • Leverage: 68.25% • Delta: 0.36 • Theta: -0.117 • Gamma: 0.136 • Turnover: 37,424
• The CART20250822C45 offers balanced risk/reward with 49.29% leverage and 0.135 gamma, ideal for a moderate rebound. The CART20250822C45.5 provides higher leverage (68.25%) and gamma (0.136) for aggressive bulls, though its 37.37% IV suggests market skepticism. Under a 5% downside scenario (ST=42.20), the 45 call would expire worthless while the 45.5 call would yield max(0, 42.20-45.5)=0. Both contracts reflect bearish positioning despite technical indicators suggesting oversold conditions. Aggressive bulls may consider CART20250822C45 into a bounce above 48.79 (middle Bollinger Band).

Backtest Maplebear Stock Performance
The Catastrophic Accident Risk Transfer (CART) strategy demonstrated robust performance following a severe intraday plunge of at least -13%. Over a 30-day backtested period, the strategy achieved a win rate of 60.96% and a maximum return of 6.50%, highlighting its effectiveness in recovering from extreme market downturns.

Maplebear at Inflection Point: Watch 43.53 Support and Amazon's Grocery Play
Maplebear's (CART) 12.86% decline reflects immediate vulnerability as Amazon (AMZN) gains 1.25% in sector leadership. While technicals suggest oversold conditions (RSI=54.63), the stock's proximity to 200-day support (43.53–43.85) and Bollinger Band breakdown (45.86–51.72) indicate a high probability of further downside. Investors should monitor 43.53 support and 48.79 resistance levels, with Amazon's grocery expansion timeline serving as a critical catalyst. The CART20250822C45.5 option offers high leverage (68.25%) for aggressive bulls, but bearish positioning remains dominant. Watch for $43.53 breakdown or regulatory reaction to Amazon's grocery strategy.