This Is Blue Apron's Biggest Problem
As far as initial public offerings go, something close to the worst-case scenario is playing out for meal-kit delivery company Blue Apron (NYSE: APRN). Originally expected to price its shares between $15 and $17, the company ended up pricing them at just $10, with the blockbuster news that Amazon (NASDAQ: AMZN) had agreed to acquire Whole Foods Market likely playing a role in that decision.
Blue Apron stock has been trending downward since its first day of trading, with investors worried about elevated customer turnover, exploding marketing costs, and competition. On Monday, news broke that Amazon had filed a trademark application for its own meal-kit service. Shares of Blue Apron shed another 10% on that revelation, trading around $6.60 at midday.
A Blue Apron box full of ingredients. Image source: Blue Apron.
Source: Fool.com
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