uploads///Blue Apron Shares Have Plunged by  from the IPO Price

How Amazon Has Affected Blue Apron Stock

By

Nov. 20 2020, Updated 10:49 a.m. ET

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.

Article continues below advertisement

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.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.