Full Answer
Is Blue Apron’s stock price too high or too low?
In fact, Blue Apron’s share price decline got so bad that in mid-2019 Blue Apron had to execute a 1-for-15 reverse split. In most stock splits, a company’s share price gets too high for comfort.
What happened to Blue Apron?
Back in 2017, a formerly hot, formerly profitable company called Blue Apron went public. It didn’t go well. Today as the global stock market continues to fall, shares in the former venture darling are soaring, up more than 140% in midday trading.
Should Blue Apron be worried about Amazon’s acquisition of Whole Foods?
Aside from Hello Fresh and the countless other meal kit services, Blue Apron now has to worry about Amazon’s acquisition of Whole Foods. Such an acquisition will make grocery delivery cheaper and easier for millions of Americans, which will inevitably cut into Blue Apron’s bottom line. Amazon can launch their own version of Blue Apron.
Why is blue apron stock dropping?
Shares suffer biggest loss since June 2020 after net loss widens and spending on customer acquisitions is expected to accelerate.
Is Blue Apron losing money?
Net loss was $88.4 million and diluted loss per share was $3.97 , based on 22.3 million weighted-average common shares outstanding, compared with net loss of $46.2 million and diluted loss per share of $3.06 , based on 15.1 million weighted-average shares outstanding for full year 2020.
Is blue apron stock worth buying?
Blue Apron has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 1 buy rating, no hold ratings, and no sell ratings.
How is blue apron doing financially?
Blue Apron Caps a Year of Net Revenue Gains With Extensive Marketing Investments. It was a mixed bag for Blue Apron in 2021 and in the fourth quarter, as the company grew its order value while taking some financial hits to invest in future growth.
Is Blue Apron in trouble?
Blue Apron was struggling at the start of 2020. March 14, 2022, at 9:25 a.m. Blue Apron was struggling at the start of 2020. The meal kit company was trying to boost sales with new options like premium meals, but it was also considering putting itself up for sale.
What's wrong with Blue Apron?
Meal kit company Blue Apron has lost some of its steam in customer retention, losing 21,000 customers in Q2 2021 compared to the same period last year, but says other key performance metrics including average order value and average revenue per customer are strong.
Is blue apron still a public company 2022?
In February 2022, the company completed a private placement of shares of Class A common stock and certain warrants at $14 per unit, with RJB Partners LLC, an affiliate of Joseph N. Sanberg, an existing stockholder, resulting in $4.8 million of proceeds, net of issuance costs.
Should I buy Aprn stock?
The consensus among 1 Wall Street analyst covering (NYSE: APRN) stock is to Strong Buy APRN stock.
What industry is Blue Apron in?
e-commerce businessBlue Apron, LLC operates as an e-commerce business that delivers fresh ingredients and recipes to make meals for homes. The Company offers fresh meats, fish, herbs, vegetables, and fruits in refrigerated boxes with ingredients and recipe cards. Blue Apron serves customers in the United States.
Is Blue Apron making a profit?
The first quarter of 2021 saw Blue Apron return to its money-losing ways, with net losses of $15.7 million, or $0.88 per share, while adjusted EBITDA worsened 5% year over year to a loss of $6.1 million.
What is Hello Fresh net worth?
This year, after lagging far behind Blue Apron in the U.S. for most of its entire history, HelloFresh caught up and overtook it, making it the No. 1 meal-kit company in America as well as the rest of the world. The company went public in November 2017 in Germany, and as of presstime, is worth more than $2.3 billion.
Who invested in Blue Apron?
Blue Apron entered into agreements for (i) a new $40.0 million private placement investment by RJB Partners LLC, an affiliate of Joseph N.
The latest
Until now. Suddenly Blue Apron is the hottest stock in the world, skyrocketing as other companies shed value. Today in regular trading, American indices fell so far that they triggered protective circuit breakers. At the same time, Blue Apron was doing this (via Google Finance):
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When your stock forgets to pop
When tech stocks like Facebook ( $FB) and Snap Inc. ( $SNAP) launched in the last few years, their share prices drastically increased or “popped” during their first trading day. This increase in value stems from a sudden increase in demand, as the stock recently launched and investors want to get into an exciting new opportunity.
Should you invest in Blue Apron?
Investors are split right now on whether or not Blue Apron is a good investment. On one hand, it makes a decent enough amount of money, is growing in demand, and could potentially become profitable in the future. At the same time, it’s down over 10% just a few days after launch and faces uncertainty in an Amazon-dominated future.
What happened
Shares of Blue Apron ( APRN -10.30% ), the meal kit service that turned into a busted IPO, have been making an incredible rally in recent days, as demand for its meal kits seems to be climbing while there's been a run on food at grocery stores across the country.
So what
There is at least one piece of evidence that Blue Apron has seen a spike in demand. Yesterday, the company tweeted that it was hiring for temporary and permanent positions at its Linden, New Jersey, and Richmond, California, facilities.
NYSE: APRN
Blue Apron is hiring temporary and permanent positions at our Linden, NJ and Richmond, CA fulfillment centers-no experience necessary! Click the link to head to our careers page-we're in this together 💙 https://t.co/8FAHLj8lEt
Now what
Today, the rally in Blue Apron, which had turned parabolic and was likely driven by speculators, seemed to come to an end. A 12-times gain in less than a week is staggering in any kind of market, especially during a crash, and stocks that seem well adapted to the current crisis have periodically soared in recent weeks.
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Blue Apron Has Problems
There are a few fundamental problems with Blue Apron, the sum of which will likely keep APRN stock depressed.
Blue Apron Stock Will Remain Weak
Because Blue Apron hasn’t proven that it can either grow without running up expenses or cut expenses without killing revenues, Blue Apron stock will likely remain week.
Bottom Line on Blue Apron Stock
Continue to avoid APRN stock. Shares have been weak for a long time because of one big fundamental problem — Blue Apron can’t grow without spending an arm and a leg. This problem remains true today. So long as it does remain true, APRN stock will remain weak.