What Snap and Blue Apron Have in Common
Snap and Blue Apron’s disappointing numbers
Snap (SNAP) and Blue Apron (APRN)—both of which reported their respective quarterly numbers on Thursday, August 10—have other things in common. While they have totally different businesses, both went public this year, and both were highly anticipated IPOs (initial public offering). While Snap went public on March 2, Blue Apron debuted on June 29.
Both shares are trading below 50% of their respective IPO shares. Snap shares have tanked 51.4% since its IPO. Blue Apron shares have plunged 49.5%.
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Blue Apron shares fell nearly 18% on Thursday alone, after missing earnings estimates and reporting unexpected costs. Snap’s shares also fell 17% in aftermarket trading after missing analysts’ expectations on all counts. Snap has also seen its expenses grow almost four-fold YoY to $443 million.
Both companies are in the red
As a result of higher-than-expected costs, both companies missed the Wall Street earnings expectations. Blue Apron posted a net loss of $0.47 per share, compared with the analysts’ expectation of a net loss of $0.30 per share. Snap saw a net loss of $0.16 per share, compared with the expectation of a net loss of $0.14 a share.
Snap and Blue Apron also experienced a lot of popularity at first, but both have since been negatively affected by actions taken by behemoths in their respective segments.
Specifically, Snap has been targeted by Facebook (FB), with Instagram emulating some of Snapchat’s popular features, while Blue Apron shares hit rock bottom when Amazon.com (AMZN) filed for a trademark application for its meal-kit delivery, which is one of Blue Apron’s special features.
Both companies are now struggling and could find it difficult to grow meaningfully, with each stock facing several potential headwinds going forward.