Is Blue Apron Stock a Buy?
In many regards, the company was built for the strange situation the world is now in. People don't want to leave their homes, but they still need to eat. Meal kit service Blue Apron (NYSE: APRN) solves both problems by dropping ready-to-cook foods right at their doorstep. The company acknowledged an increase in demand late in the quarter that ended in March, driven by the advent of COVID-19 in the United States.
The underlying problems that have haunted this company since its inception, however, remain in place -- this business simply doesn't scale. That is to say, growing the operation doesn't drive Blue Apron toward profitability. And, even if the business could eventually achieve an economy of scale, better-armed and better-positioned rivals would ramp up their competitive efforts to keep Blue Apron from stealing market share.
In other words, Blue Apron stock isn't a buy.
Source Fool.com
