Blue Apron stock plunges yet again
There has been no respite for meal-kit delivery company Blue Apron (APRN) since it went public last month. Its stock fell 12% on Monday after Amazon (AMZN) filed a trademark application for prepared food kits. Amazon has been the main driver of grocery stock since it announced that it will be acquiring Whole Foods (WFM).
Amazon is notorious for bullying new businesses. Now the e-commerce giant is targeting the beleaguered meal-kit delivery company. The company ships ingredients and recipes to customers on a subscription basis. The company had an admirable one million customers and $795 million in revenue in 2016. However, like other start-ups, the company has been recording losses.
Other reasons for Blue Apron stock’s fall
The Amazon news is a big blow to Blue Apron. The company had to cut its IPO (initial public offering) price in June, mainly due to concerns about customer retention and higher marketing costs.
Blue Apron opened trading at $10 per share on June 29, 2017. This price was far below the initially proposed range of $15–$17. Since its IPO, its stock has fallen. Blue Apron stock is now down 34% from its IPO price.