We also embraced the art of cooking at home, and that's where Blue Apron has been able to regain its racing stripes.īlue Apron lost its COO in late May, but it offset the negative development by pointing out that it was experiencing heightened demand for its meal kits in light of the coronavirus pandemic. Then the pandemic happened, and Blue Apron's model and business unboxed validation.ĬOVID-19 has been brutal to most businesses, but some opportunistic trends have emerged in the process. There didn't seem to be much of an escape for Blue Apron, and by mid-March it was trading for less than half of where it was when the year began - for the fourth time in a row. The competitive nature of this niche keeps markups low. Profitability has been a problem for Blue Apron given the high input, customer acquisition, and fulfillment costs. Scalability is a concern given the high variable costs. It started to retreat, only partly by choice. The meal kit model itself came into question, and Blue Apron didn't have an answer. Blue Apron has actually plummeted 91% from its split-adjusted IPO price of $150.īlue Apron hit the market as a growth stock in 2017, but by early 2018 those days were over. Blue Apron executed a painful 1-for-15 reverse split last year when its shares buckled below the $1 mark, and it was in danger of losing its exchange-listing compliance. It's been 37 months since Blue Apron went public at $10, but cracking into the low teens doesn't make the stock a winner. It's a refreshing change of pace for investors in a stock that has shed more than half of its value in each of its three previous years as a public company. It has nearly doubled - up 98% - in 2020. Blue Apron is one of this year's hottest stocks.
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