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Blue Apron Slashes IPO Price Range, Amazon to Blame?
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On Wednesday, meal-kit delivery service company Blue Apron has considerably slashed its IPO price range, and now estimates its public offering between $10 to $11 a share, down from the $15 to $17 a share the company originally expected.
This new pricing implies a valuation of a little over $2 billion, compared the approximately $3 billion Blue Apron was initially guiding for.
Arguably the biggest and most popular option in a crowded industry, Blue Apron is in the final stages of going public. Last week, the company submitted a filing that officially began the IPO process after months of rumors; it plans to trade on the New York Stock Exchange under the ticker symbol “APRN.”
Blue Apron also said it expects net proceeds of around $292.7 million from the offering at the midpoint of the range, and intends to use these funds for working capital, capital expenditures, and general corporate purposes.
When Amazon (AMZN - Free Report) announced its $13.7 billion bid to buy Whole Foods Market , investors grew cautious, and some even more so, on Blue Apron’s IPO. Amazon has tested food delivery before, and offers meal kits through its AmazonFresh service, which delivers ingredients and recipes to Prime members. Whole Foods, too, sells ready-to-cook meal kits, and with Amazon’s unmatched delivery and pickup logistics, potential Blue Apron investors should be wary.
The company has also yet to make a steady profit. While it was profitable in the first quarter of 2016, its losses grew as the year went on, posting a net loss of $54.9 million last year. Revenues, though, are growing. Blue Apron generated $795 million in revenues last year, up from $341 million in 2015.
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Blue Apron Slashes IPO Price Range, Amazon to Blame?
On Wednesday, meal-kit delivery service company Blue Apron has considerably slashed its IPO price range, and now estimates its public offering between $10 to $11 a share, down from the $15 to $17 a share the company originally expected.
This new pricing implies a valuation of a little over $2 billion, compared the approximately $3 billion Blue Apron was initially guiding for.
Arguably the biggest and most popular option in a crowded industry, Blue Apron is in the final stages of going public. Last week, the company submitted a filing that officially began the IPO process after months of rumors; it plans to trade on the New York Stock Exchange under the ticker symbol “APRN.”
Blue Apron also said it expects net proceeds of around $292.7 million from the offering at the midpoint of the range, and intends to use these funds for working capital, capital expenditures, and general corporate purposes.
When Amazon (AMZN - Free Report) announced its $13.7 billion bid to buy Whole Foods Market , investors grew cautious, and some even more so, on Blue Apron’s IPO. Amazon has tested food delivery before, and offers meal kits through its AmazonFresh service, which delivers ingredients and recipes to Prime members. Whole Foods, too, sells ready-to-cook meal kits, and with Amazon’s unmatched delivery and pickup logistics, potential Blue Apron investors should be wary.
The company has also yet to make a steady profit. While it was profitable in the first quarter of 2016, its losses grew as the year went on, posting a net loss of $54.9 million last year. Revenues, though, are growing. Blue Apron generated $795 million in revenues last year, up from $341 million in 2015.
Blue Apron was founded in 2012, and is based in New York City. For an in-depth look at the company, check out: What Investors Need to Know About Blue Apron.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2%, respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>