Shares of online grocery delivery service Instacart, Inc. (CART), operating under parent company Maplebear Inc., plummeted nearly 10% in the after-hours trading session on Tuesday, despite reporting better-than-expected earnings for the fourth quarter of fiscal 2024.

The company reported Q4 earnings per share of $0.53, surpassing analysts' consensus estimate of $0.38. However, revenue for the quarter came in at $883 million, narrowly missing expectations of $891 million. While Instacart saw a 10% year-over-year increase in gross transaction value (GTV) to $8.65 billion and an 11% rise in orders to 77.5 million, investors seemed to have reacted negatively to other factors.

Analysts cited concerns over Instacart's competitive valuation and the intensifying competition in the online grocery delivery space as potential reasons for the significant after-hours decline. Despite the company's strong performance, some believe that the current share price may not adequately reflect the challenges ahead, leading to a sell-off.