<div id="readability-page-1"><p>E-commerce giant Amazon (AMZN) has been growing its presence in the grocery delivery market, which has weighed heavily on the stock of rival Instacart (CART). However, five-star Morgan Stanley (MS) analyst Brian Nowak says that this decline may actually be a buying opportunity. Indeed, the grocery market is massive, with an estimated total value of $1.7 trillion, making it one of the largest remaining areas of offline spending. And although Amazon is a serious competitor, Nowak believes that its recent announcements have created what he calls &#34;peak tactical fear&#34; around Instacart.</p><h3>Claim 50% Off TipRanks Premium</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>As a result, that fear may be overdone, especially with Instacart set to report fourth-quarter results on February 12. In fact, the company is expected to deliver adjusted earnings of $0.95 per share on about $970 million in revenue, which would represent strong growth from a year ago. Therefore, Nowak argues that dismissing Instacart because of Amazon's scale would be a mistake. He points to Instacart's loyal subscriber base and notes that customers are often reluctant to switch services once they are used to the convenience. </p> <p>He also highlights Instacart's strong position in benefiting from AI-related trends, thanks to its access to retailer data, logistics, and its partnership with ChatGPT. Finally, Nowak believes that Amazon poses a bigger threat to smaller competitors than to Instacart itself. He notes that Amazon's early grocery efforts tend to focus on smaller, add-on purchases, while Instacart is more focused on full weekly grocery orders. So while Amazon offers convenience and one-stop shopping across many categories, Instacart stands out for its wider grocery selection and more personalized experience, including real-time communication with shoppers. </p> <h2><strong>Is CART Stock a Good Buy?</strong></h2> <p>Overall, analysts have a Moderate Buy consensus rating on CART stock based on 14 Buys, nine Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average CART price target of $50.83 per share implies 34.8% upside potential.</p></div>

AMZN

CART

AMZU

EBIZ

IBUY

AMZZ

ONLN

<p>Morgan Stanley analyst Brian Nowak suggests buying Instacart (CART) stock, viewing the current decline as a buying opportunity amid heightened competition from Amazon (AMZN). He believes the grocery market's vast potential, valued at $1.7 trillion, and Instacart's loyal customer base mitigate fears surrounding Amazon's presence. Instacart is expected to report strong fourth-quarter earnings, with adjusted earnings of $0.95 per share on $970 million in revenue. Analysts maintain a Moderate Buy consensus on CART, with a price target of $50.83, indicating a 34.8% upside potential.</p>

- Amazon's expansion in the grocery delivery market has negatively impacted Instacart's stock, but Morgan Stanley analyst Brian Nowak views this decline as a potential buying opportunity.  
- He argues that Instacart's loyal subscriber base, potential earnings growth, and strong positioning in AI trends mitigate fears created by Amazon's competition.  
- Analysts have a Moderate Buy consensus on Instacart stock, projecting a significant upside based on recent performance and future earnings estimates.

'Buy Instacart Stock amid Peak Tactical Fear of Amazon,' Says Five-Star Analyst