+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Amazon deals yet another huge blow to Blue Apron

Aug 26, 2024, 22:46 IST
Mario Tama/Getty ImagesAmazon and Jeff Bezos delivered another blow to much-maligned Blue Apron after filing a trademark application for meal kits.The hits just keep on coming for Blue Apron.

After already suffering the indignity of trading below its offering price every day since its initial public offering two and a half weeks ago, the meal kit retailer now faces a new hurdle - and surprise, surprise, Amazon is once again the culprit.

The Jeff Bezos-led juggernaut filed a trademark application on July 6 for "prepared food kits," as reported by TheStreet.com's Laura Berman early Monday morning.

Blue Apron's stock sank 8.3% to $6.75 per share in pre-market trading. It now sits roughly 33% below its IPO price of $10 per share.

Advertisement

It's just the latest Amazon-fueled hit absorbed by flailing Blue Apron, which took a cleaver to its IPO range in the week prior to pricing following Amazon's $13.7 billion acquisition of Whole Foods. Many potential investors identified the possibility of more competition in the food-delivery industry and ran the other way. As such, Blue Apron trimmed its IPO range to $10 to $11 a share, down from $15 to $17.

Sadly enough, Blue Apron's current price looks downright bullish compared to the $2 per share price target it received from Northcoast Research, the first Wall Street firm to weigh in on the company.

While perhaps the most extreme current example, Blue Apron's plight highlights the unfortunate reality facing many companies in the retail industry: Amazon is coming, and there's nowhere to hide.

Markets InsiderBlue Apron has had a tough run since its IPO pricing.

NOW WATCH: Wells Fargo Funds equity chief: Shorting anything is 'playing with fire'

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article