Buy Blue Apron Stock
But then the pandemic hit. After declining for more than two straight years, Blue Apron's revenue started to rise again as more people stayed at home and ordered meal kits. Investors noticed those improvements, and the company's stock stabilized and has risen about 15% over the past 12 months. Could Blue Apron's beaten-down stock finally be worth buying again?
buy blue apron stock
However, Blue Apron also expects to ramp up its marketing spending again throughout the rest of the year. That's why it raised $21.1 million in cash with a stock offering back in June, then announced another $78 million capital raise -- which mainly includes warrants for purchasing additional shares over the next seven years -- in September.
Analysts expect Blue Apron's revenue to rise 8% to $497.7 million this year. Based on that forecast, its stock trades at just 0.4 times this year's sales. By comparison, HelloFresh trades at 2.3 times this year's sales.
Last November, I told investors that Blue Apron's stock could recover if it continued to stabilize its business. The stock has risen about 60% since then, and I believe it could still have room to run if it continues to streamline its business, focus on higher-value customers, and roll out new products.
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The possible share buyback might generate excitement in the short term. But it's hard to see how a money-losing business can create sustainable investor value by buying back its own stock, instead of using that money for business purposes.
Blue Apron's turnaround plan may be a glimmer of hope for the battered company. But investors should pay more attention to its current financials, which aren't pretty. Second-quarter revenue increased by less than 1% year over year (from $124 million to $124.2 million), while operating losses jumped 85% to $22.7 million after a spike in marketing spending and general expenses. The company doesn't seem to have a pathway to profitability, or a particularly convincing turnaround strategy. And investors should stay far away from the stock until this changes.
NEW YORK--(BUSINESS WIRE)--Blue Apron Holdings, Inc. (NYSE: APRN) today announced that it has commenced an underwritten public offering of shares of its Class A common stock. Blue Apron intends to grant the underwriter a 30-day option to purchase up to an additional 15% of the shares of its Class A common stock to be sold in the offering. All of the shares in the offering are to be sold by Blue Apron.
Blue Apron (APRN) has been on a low tide for years, unable to reach the 2017 high of $150, trading between $2 and $3 in October. A recent partnership with Amazon (AMZ) attracted interest. However, it was outshadowed by the equity offering that hurt the APRN stock price.
In the aftermath of the pandemic, APRN lost 78.6% of its gains falling to $3.88 in September 2021. Some positive price action was seen in December 2021, when Blue Apron made its recipes available with Amazon Alexa. In 2022, APRN stock has continued to fall in line with the wider negative sentiment.
Rising competition in the sector could affect Blue Apron stock predictions, according to Invezz editor Jayson Derrick, who noted that US grocery giant Kroger announced the acquisition of smaller rival Albertsons last week:
Always conduct your own due diligence before trading, looking at the latest news, a wide range of analyst commentary, technical and fundamental analysis on the stock. Keep in mind that past performance does not guarantee future returns. And never trade money that you cannot afford to lose.
The consensus forecast from analysts, compiled by MarketBeat, as of 18 October, was that APRN could rise to $9.67 in the next 12 months. The most positive Blue Apron stock forecast saw APRN increase to $10, while the lowest suggested a fall to $9.
Whether you should invest in APRN stock should depend on your personal circumstances and risk appetite. You should always do your own research and evaluate the level of risk you are prepared to accept before investing. Never invest money you cannot afford to lose.
With a stock price of $2.44 and a market cap of just under $85 million, Blue Apron (NYSE: APRN) has fallen to penny stock status -- a far cry from the $1.9 billion it was worth when it went public in 2017. But the situation could get even worse for the embattled meal kit company. Let's discuss why investors should stay away from this money-losing business.
With a price-to-sales (P/S) ratio of just 0.16, Blue Apron's stock is worth less than 20% of its annual revenue. While this valuation looks staggeringly low compared to the S&P 500's average of 2.29, Blue Apron is cheap for a reason. The company has failed to create an economic moat, sales are on a downtrend, and management's turnaround strategy looks likely to accelerate operational losses with no guarantee of success.
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Since going public, Wall Street has cut Blue Apron's stock price in half. By October 2017, prior to its next earnings report, the company had announced a company-wide realignment, 6% of employees laid off at both the corporate offices and fulfillment centers, estimated to be a couple of hundred jobs.
Analyst Matthew Trusz initiated coverage of the brand on Friday, recommending the stock as a buy to investors. He said Blue Apron is "turning the corner on well-publicized operational issues" that dragged its share price from $10 in June to a little over $3 in current trading.
Quick recap: Salzberg and two co-founders launched Blue Apron in 2012, and grew it to a $2.2 billion valuation before going public in July 2017--just as Amazon bought Whole Foods. Soon, Blue Apron's stock tanked.
It would appear she's betting that it will: her salary for 2019 is $250,000, which is only half what Dickerson takes home (he's staying on as an adviser), according to the Journal. Her real upside seems to start with "$3 million in stock awards."
It would appear she's betting that it will: her salary for 2019 is $250,000, which is only half what Dickerson takes home (he's staying on as an adviser), according to the Journal. Her real upside seems to start with \"$3 million in stock awards.\"
The recent price decline of 16% in Blue Apron Holdings, Inc.'s (NYSE:APRN) stock may have disappointed insiders who bought US$20m worth of shares at an average price of US$12.00 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$1.3m which is not ideal.
The fact that there have been no Blue Apron Holdings insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Blue Apron Holdings stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Blue Apron Holdings has 5 warning signs (2 make us uncomfortable!) that deserve your attention before going any further with your analysis.
In the past three months, Blue Apron insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $13,879.00 in company stock.
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Therefore, the only real positive for APRN stock centers on its potential use as a tax-loss harvesting tool. This practice refers to selling losing investments to offset capital gains, perhaps accrued from selling winners. While commonly associated with hedge funds, any investor meeting certain tax criteria may benefit from the tactic.
Although Americans generally carry a never-say-die attitude, when it comes to investing, knowing when to call it quits represents a vital skill. For APRN stock, the main headwind is that the underlying business lacks relevance amid brewing macroeconomic pressures.
Centrally, the pain point focuses on the broader health of the consumer. On paper, it might seem that APRN stock could be due for an eventual comeback. After all, the latest November jobs report came in much hotter than anticipated. While this dynamic ordinarily bodes well, it also means that more dollars chase after fewer goods.
Turning to Wall Street, APRN stock has a Moderate Buy consensus rating based on one Buy, two Holds, and zero Sells assigned in the past three months. The average APRN price target is $4.67, implying over 629% upside potential. 041b061a72