Blue Apron Has Been Getting Smashed
It has been a rough road for Blue Apron since the meal delivery company's IPO just 36 days ago. At a price low of 5.83, the stock is now down over 40% from the initial offer price of 10.00. The strange part to me is the high for the stock was around 11, so even the insiders have had a hard time making any money. Usually with the IPOs, the stock is offered at a low price to insiders and then bid up after it goes public by all of the investors not connected enough to get in early. Then the insiders quickly sell their position while liquidity is high, and either short the stock or sit out the long inevitable reversion to reality. But with prices steadily marching down, it would have been incredibly difficult to book any profits at all on the long side.
What a difference a month makes!
I have been keeping an eye on this stock since I heard about Amazon buying Whole Foods a while back. There has been speculation that the play will have drastic consequences for the unconventional food services over the medium to long term. But, no one really expected Blue Apron to get hit this hard, this fast. It has been so bad, that just today, there was an announcement that nearly a quarter of their payroll would be receiving pink slips. Over 1,200 people! It looks like a matter of time before the major analysts start jumping ship, which may add even more pressure to the down side.
I am not recommending anyone do anything with their money, lol I don't have the licensing for any of that. Be careful out there!
chart can be found here: https://finance.yahoo.com/quote/APRN?p=APRN
another great article on APRN: http://www.silverdoctors.com/headlines/finance-news/us-company-gives-pink-slips-to-24-of-its-workers/#more-80199
I read a couple weeks ago that the cost to gain each customer was some rediculous number, like $50+ if I remember correctly.
Unreal, the margins don't seem fantastic on their product either. Expensive to ship.
Okay I was off with my number just a bit. The cost is $94 per new customer!!! https://www.google.com/amp/s/www.recode.net/platform/amp/2017/6/1/15727182/blue-apron-ipo-s1-analysis-customer-acquisition-marketing-churn
Wow, great info! 178 million in marketing costs from March 2016-March 2017!
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