Blue Apron is trading down 7% in the pre-market, down over 30% from its IPO-day highs and down 25% from the IPO/Open price... in 10 days. Today's decline, following SNAP's crash yesterday, seems catalyzed by the first analyst rating since the IPO.. at $2!
As Bloomberg reports, the stock got its first analyst rating since the June 28 IPO; the company’s business model has severe cost challenges and intensifying competition,:
Northcoast Research analyst Chuck Cerankosky writes in note...
- Rates APRN new sell, PT $2 is just above pro forma net assets per share
- Sales growth seems to be dependent upon promotional discounts; very high labor and shipping costs
And that just piled on APRN's problems...
And while we are at it, SNAP is trading down another 4% pre-open in the low $16s...