Breakfast News: Delivery King Eyes Grocery Carts

October 27, 2026 · by TPW Pipeline

1. DoorDash Eyes Supermarkets After Restaurants

DoorDash (DASH -6.10%) first conquered food takeout. Now, it reportedly wants to drop $17 billion to take on Walmart (NYSE:WMT) and Amazon (AMZN +0.44%) in the grocery aisle. DoorDash (DASH -6.10%) is in talks to buy Instacart (CART +7.87%) after Uber (UBER -0.85%) walked away from the table, according to the WSJ. While Instacart stock closed almost 8% higher on the news, DoorDash stock dropped around 6%.

Slower growth at a fuller price: DoorDash and Instacart’s 2021 talks, at $40 billion to $50 billion, fell through over doubts about antitrust approval. Those concerns could resurface. The $17 billion price is over 30% above Instacart’s $13 billion value on Friday and equals nearly a quarter of DoorDash’s own $73 billion market cap.
DoorDash’s bigger game plan: Instacart’s revenue growth slowed to 11% over the last two years from 19% in 2023. DoorDash has bigger plans, though: expand beyond food and plug Instacart’s ad business and supermarket ties. DoorDash dominates the food delivery market and is flush with cash, so even a high price may not be too high for it given the growth opportunity.

Instacart is a Team Rule Breakers recommendation. DoorDash is a Team Hidden Gems recommendation. DoorDash’s November 2023 Stock Advisor recommendation is beating the S&P 500 by 21%.

2. Meta Goes Big on AI Via Stock Sale

Mark Zuckerberg is betting the entire farm on artificial intelligence (AI). To fuel that vision, Meta Platforms (META -1.88%) is now selling about $35 billion in new stock, laying the groundwork for up to $60 billion more starting in 2027. Guess who’s stepping up with an investment in the offering? Nvidia (NVDA +2.39%).

Backing Meta’s AI plan: Nvidia will invest $3 billion in Meta’s stock sale and has just expanded its partnership on Meta’s Muse AI agent ecosystem. Part of that money should flow right back as revenue since Meta is deploying more Nvidia chips and networking gear. Having Nvidia put its capital alongside Meta’s validates the build-out and gives both companies a clearer runway to monetize next-generation AI agents.
Why the stock sale was coming: Andy Cross, The Motley Fool’s chief investment officer, noted how Meta’s “once prodigious free cash flow (FCF) flipped negative last quarter.” Andy says the investment case, and the risk, is that Meta can “grow earnings and FCF by 15-20% annualized over the next 5 years as they digest the huge AI build-out spending and then monetize those capitalized assets as the depreciation expenses continue to build.” Eventually, Meta must fill the gap between its AI spend and FCF.

3. These 2 Stocks Sold Off. Here’s What You Should Know

Political uncertainty in Brazil just threw cold water on the market, with Brazilian stocks crashing after elections. Wall Street had aggressively positioned for a business-friendly, tax-slashing administration. Instead, President Luiz Inácio Lula da Silva’s victory sparked immediate fears of expanded government spending, tighter credit conditions, and a weakening Brazilian real. Foolish investors shouldn’t take short-term market noise as a cue to hit the sell button.

MercadoLibre (MELI -7.81%) closed 7.81% lower on Monday. Brazil generated 54.4% of second-quarter revenue for the Team Hidden Gems and Team Rule Breakers recommendation. MercadoLibre’s e-commerce dominance and high-margin advertising business remain structurally intact. The Q3 report, expected in early November, is the first real test of Brazil credit quality and spending after the shock.
Nu Holdings (NU -16.95%), a Team Rule Breakers recommendation, fell 17%. Because Nu earns mainly in Brazil, a weaker Brazilian real means fewer dollars earned. Fool contributing analyst Matt Frankel says, “if you believe that the reaction to the election is overblown, Nu could be an opportunity.” Frankel believes Nu is a “higher-risk opportunity” than MercadoLibre because the latter depends more on other Latin American countries such as Mexico and Argentina.

4. Big Earnings to Watch Out For

A number of Stock Advisor recs report after today’s closing bell, including Visa (V -0.92%), previewed in yesterday’s Breakfast News.

Enphase Energy (ENPH -3.92%): Analysts expect about $305 million of revenue, down from $410 million a year ago. Tariff-driven margin pressure and high interest rates are major concerns for the Team Rule Breakers and Team Hidden Gems recommendation. The June IQ9 microinverter rollout could help fourth-quarter guidance if growing battery demand stabilizes revenue.
Waste Management (WM +0.69%): Management trimmed its full-year revenue outlook in July to $26.48 billion. The Stock Advisor recommendation by Team Rule Breakers has slid about 7.5% since. Revenue growth and guidance will determine where shares head next.
EQT (EQT -1.40%): EQT just agreed to buy Range Resources (RRC +17.66%) in an all-stock transaction worth $13 billion to create the largest natural gas producer in the U.S. The deal will be the focus of the earnings call for the Team Hidden Gems recommendation.
NXP Semiconductors (NXPI +4.64%): The Rule Breakers rec is coming off a record Q2. However, with recent concerns on limited automotive restocking and mobile weakness, investors will look for tighter numbers and proof that data-center and AI wins are building.

Other stocks reporting before market open tomorrow that our analysts will watch closely include:

GE Vernova (GEV +4.92%): Analysts expect around $4.25 in earnings per share on roughly $12 billion of revenue from the natural gas turbine giant. Q2 revenue beat, but EPS missed by more than 20%, so investors want profit to catch up as the Team Hidden Gems rec rides the data center wave.
Vertiv Holdings (VRT +2.81%)<st
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.