Why Shares of Blue Apron Holdings Continue to Get Crushed
When it rains it pours, and Blue Apron Holdings, Inc. (NYSE: APRN) has had a downpour of bad news after its recent initial public offering. Today, news of e-commerce juggernaut Amazon.com (NASDAQ: AMZN) filing for a prepared food kit trademark application was enough to send shares of Blue Apron down 10% as of 11:30 a.m. EDT.
This is just the most recent development for the company, which had previously anticipated going public for between $15 and $17 per share, before recalculating that to $10 for its official opening. Blue Apron now trades at around $6.60, and its future remains highly speculative after Amazon filed a trademark for "prepared food kits composed of meat, poultry, fish, seafood, fruit and/or vegetables... ready for cooking and assembly as a meal." When you combine that with slowing revenue growth, dismal customer retention rates, contracting margins, and rising expenses, Blue Apron becomes a high-risk stock for investors' money.
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Source: Fool.com
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