Amazon just dealt a massive blow to Blue Apron
On Tuesday, Amazon Fresh launched its meal kit service. Kits, which contain enough ingredients to prepare meals for two to four people, cost between $19.99 and $38.
The news comes less than a month after Blue Apron's disappointing late-June IPO. Since going public, Blue Apron has been swamped by bad news - thanks in large part to Amazon.
When Amazon filed a trademark application on July 6 for "prepared food kits," Blue Apron's stock sank 11%.
On Tuesday, Blue Apron stock dropped 5.3% as of 11:35 a.m. ET. It now sits at 38% below its IPO price of $10 a share.
Amazon started causing issues for Blue Apron before the company even went public. Blue Apron dropped its IPO range to $10 to $11 a share, down from $15 to $17, after Amazon announced its acquisition of Whole Foods.
Still, some investors say that Blue Apron still has a long way to fall. In the company's first Wall Street analyst rating, Chuck Cerankosky of Northcoast Research gave the company a price target of just $2.