- Blue Apron continues to lose more customers in each earnings report.
- Company cash flow is depleting and investors are seeking other quality investments.
- From its beginning IPO price of $10, the stock price has lost more than 75% of its value.
- Where do we go from here?
APRN (Blue Apron Holdings, $2.16) is one of America’s leading meal-kit companies, yet it’s a delivery service offering more than just meal kits signature wines, kitchen utensils, and high-quality pantry items. APRN has the opportunity of reaching a large audience considering meal-kits have become increasingly popular since the company began in 2016.
Despite their many qualities, the company is operating in a dangerously competitive field of meal subscription services. Some investors compare APRN to AMZN (Amazon) as they have created their own meal subscription service developed when AMZN acquired Whole Foods– services now called AmazonFresh. Unfortunately, APRN has lost a painful amount of subscriptions. Customers declined by 786,000 in three months ending on March 31st, 2018 from this time last year of 1,036,000.
(5yr chart view of APRN. The stock slumped down from its original IPO price of $10.00-Image Credit From FinWiz)
Fast Analysis: General Electric: The More Money The Better
There is much speculation that APRN should be bought out by a large corporation to gain more revenue and save their current customers. Around the beginning of the year, rumors were led that WMT (Walmart) would be an excellent acquisition/merge for APRN. Investors see that APRN’s high marketing expenses could be supported as well as regaining long-term customers through the partnership with WMT.
CEO, Brad Dickerson stated in a recent interview,
“With fulfillment center operations strengthening, we are increasing focus on the priorities we expect will propel revenue performance and return the business to a growth trajectory, including evolving and expanding our product portfolio, enhancing our overall customer experience, and launching our retail and on-demand offerings.”
It’s clear that this company is an excellent leading meal-kit brand, but when will they expand in partnerships to grow their business? At this time there is not a stable stock analyst recommendation for APRN being a long-term hold or Buy.
Please see About Me & Disclaimer for additional information about Black Tea.