Blue Apron craters below $1 (APRN)

Blue Apron

• Blue Apron priced its 15 million share offering at $1.15 apiece last Wednesday, representing an 11% discount to the prior day’s closing price.
• Shares have since tanked 26%, touching $0.95 on Monday.
• The meal-kit maker has had difficulty retaining customers in the past.
• The stock bottomed at $0.65 in December and started to recover following a December 20 announcement that the company partnered with Weight Watchers
• Watch Blue Apron trade live.

---

Shares of the meal-kit maker Blue Apron tumbled 12.06% to $0.95 apiece Monday, nearly a week after the company priced a 15 million-share offering at a discount.

Last Wednesday, Blue Apron priced shares at $1.15 apiece, representing an 11% discount to the prior day’s closing price, Bloomberg reported, citing sources familiar with the matter. Shares have since tanked 26%. 

Blue Apron has had a rough time as a publicly traded company since its June 2017 initial public offering. First, Amazon announced plans to buy Whole Foods, causing Blue Apron to slash its IPO range to between $10 and $11 a share, down from $15 to $17, as investors worried about the competition such a deal would bring. Then, less than a month later, Amazon rolled out its own meal-kit business. 

And in August of last year, Blue Apron announced it was having trouble keeping customers. The meal-kit maker said its total number of customers plunged by 24% in the second quarter versus the prior year and that revenue per customer dipped by $1 to $250.

After bottoming at $0.65 apiece in December, shares started to recover — up as much as 145% — following a December 20 announcement that Blue Apron was partnering with Weight Watchers to provide healthier home cooking, as well as a forecast of achieving profitability since 2019 sent out during its quarterly earnings release on January 31. 

Blue Apron was down 8% so far this year.

Now read:

• Blue Apron is soaring after saying it will ‘reaffirm confidence in achieving profitability’ on an adjusted basis (APRN)

MI

NOW WATCH: Amazon will pay $0 in federal taxes this year — here’s how the $793 billion company gets away with it

See Also:

• 19 head-scratching questions bosses have actually asked at job interviews
• 5 ways to look and feel healthier in one week, according to a nutritionist — and 5 things you should never do
• Share your opinion — become a BI Insider!

Source: Business Insider – ejiang@businessinsider.com (Ethel Jiang)