Blue Apron Finally Sees Some Respite
Blue Apron stock has fallen steeply
Blue Apron (APRN) found a massive market for meal kit delivery and became an $800 million business a few years after it was formed in 2012. However, the company’s initial IPO (initial public offering) price of $15–$17 has fallen to $10. Since going public on June 29, 2017, the company has had a rough ride. Its share price has decreased significantly, falling on nine of its first 13 days. As of Friday, July 21, the company’s stock stood at $6.55, nearly 35% below its IPO price. One reason for the decline was Amazon (AMZN) patenting a meal delivery business, threatening Blue Apron’s survival.
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Stock rises over 13%
However, Blue Apron stock had some respite in the last couple of days. It surged 13.2% on July 24, its best performance since going public. Shares rose again on July 25, by 1.2%. Eight of the 12 underwriters for its IPO have recommended buying Blue Apron shares. Two have given “equal-weight” ratings, while the remaining two do not recommend buying or holding the stock. Goldman Sachs (GS), the lead-left underwriter in the meal-kit delivery company’s IPO, initiated coverage with a “buy” rating and a price target of $11.
Blue Apron announced a number of changes at the executive level on Tuesday, July 25. Co-founder Matthew Wadiak has resigned as the company’s chief operating officer and is now a senior advisor.