uploads///Blue Apron customer base

Why Blue Apron Stock Continues to Tank

By

Mar. 29 2019, Updated 8:27 a.m. ET

Blue Apron’s stock is trading under $1 per share again

Blue Apron’s (APRN) stock continues to fall. The stock fell 3.35% on Wednesday, March 27, and is now trading below $1, at $0.93 per share. The stock now runs the risk of being delisted, as it is trading below $1 per share.

The stock has declined a worrying 90.7% from its IPO price of $10 per share, as the company continues to face stiff competition from the likes of HelloFresh, and is failing to retain customers. In the fourth quarter of 2018, the meal kit company had only 557 thousand subscribers worldwide, nearly half of the 1.04 million subscribers it boasted in the first quarter of 2017.

Article continues below advertisement

Declining customer base is hurting Blue Apron

As a result, Blue Apron’s quarterly revenues have been consistently shrinking both sequentially and on a YoY basis. In the fourth quarter of 2018, Blue Apron managed to generate only $140.73 million in revenue, a 25% YoY decline.

Back in January, the stock surged 45% to $1.51 per share when the company disclosed that it expects to be positive on an EBITDA basis in the first quarter as well as for the whole year. However, since then, the stock has lost all its gains.

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
    Do Not Sell My Personal Information

    © 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.