Blue Apron slashes IPO Price 34% as Amazon-Whole Foods looms

30 June, 2017, 00:44 | Author: Alicia Barber
  • Meal-kit maker Blue Apron slashes valuation expectations by a third

Shares of stock in the meal delivery service Blue Apron began trading publicly on Thursday morning, opening at $10 before rising above $10.50. The company intends to list its shares on the New York Stock Exchange under the symbol APRN. But a new SEC filing shows the company now plans to sell shares at $10 to $11 each. Company bigwigs said that, over a three-year period, Blue Apron generates $900 to $1,000 per average customer.

For a trendy startup, an initial public offering is supposed to be a neat, pre-packaged experience: by following a simple set of instructions, you end up with a attractive product that looks like something cooked up by a professional.

The company had initially sought to raise $510 million, which would have given it a market value of as much as $3.2 billion.

The impact that the Amazon-Whole Foods deal had on Blue Apron's IPO is underscored by the pricing of another expected IPO from DeliveryHero, which is focused on Europe and other markets beyond North America.

Investors Catching Stocks Rite Aid Corporation (RAD)
The return on assets ratio shows how well management is employing the company's total assets to make a profit. Instead, Walgreens will pay $5.18 billion to buy 2,186 stores, leaving Rite Aid as a regional chain.

The New York-based tech unicorn late Wednesday had slashed its expected IPO price to $10, off more than a third from its previous range of $15 to $17 a share, amid worries the startup could get slammed by the recently announced $13.7 billion acquisition of Whole Foods by Amazon. Amazon has a meal-kit service that delivers to customers in several USA cities, but its $13.7 billion acquisition of Whole Foods brings the e-commerce giant into brick-and-mortar stores and gives it a new avenue for food delivery.

But Blue Apron isn't making money and hasn't necessarily communicated a clear path towards profitability, which implies the stock doesn't deserve a premium valuation, she continued. Blue Apron has achieved "substantially all" of its revenue growth in recent years from new customers lured by steep discounts and trial offers.

Blue Apron sends boxes of pre-portioned ingredients and instructions for customers to cook meals at home.

Blue Apron had a total stockholder's deficit at the end of March of $183.88 million, but on an adjusted basis, assuming the proceeds of this deal, the company will have a $303.7 million positive equity position.

Recommended:

  • New cyberattack causes mass disruption in Europe

    New cyberattack causes mass disruption in Europe

    The idea is to make their digital data more accessible to shippers, retailers, cargo movers, truckers and others. It was unclear who was behind the attacks or whether they were all connected.
    Health care questions can be solved

    Health care questions can be solved

    It would let states ease Obama's requirements that insurers cover certain specified services like substance abuse treatments. Dean Heller opposed the BCRA on Friday, and on Tuesday, following McConnell's announcement about the vote delay, Sens.
    Trump takes another swipe at CNN following resignations

    Trump takes another swipe at CNN following resignations

    Creamer's firm recently sued Project Veritas alleging the sting violated federal wiretap law. "Yelling "fake news" is unfair". CNN Worldwide President Jeff Zucker has noted how the network's feud with Trump has helped its ratings and branding.
  • Moto Z2 spotted on GFXBench, may come with Snapdragon 835 processor

    Moto Z2 spotted on GFXBench, may come with Snapdragon 835 processor

    The device is powered by quad-core Qualcomm Snapdragon 425 processor which clocks at 1.4GHz and is supported by Adreno 308 GPU. Now, the Moto Z2 is expected to get unveiled on June 30 as the company is holding a launch event on that day.
    Amazon to host Prime Day in India; What about Flipkart?

    Amazon to host Prime Day in India; What about Flipkart?

    Prime members will get this exclusive Prime Day sneak preview ahead of the full The Grand Tour season 2 launch later this year. In addition to the US , shoppers in 12 other countries - including the U.K., Mexico and China - can participate this year.
    Qatari FM to meet Tillerson

    Qatari FM to meet Tillerson

    They have sent it 13 demands including closing al Jazeera television, curbing relations with Iran, and paying reparations. Trump considered Corker as a potential vice president and secretary of state, and he works closely with the White House.
  • Google News benefits from a major redesign and fact-checking

    Google News benefits from a major redesign and fact-checking

    The user can now read news on a card-based interface, similar to the mobile app of the search engine. Sections like World and Business now feature icons in the dedicated left-hand navigation column.
    The first reactions to 'Spider-Man: Homecoming' have hit the internet

    The first reactions to 'Spider-Man: Homecoming' have hit the internet

    With Tomei having such an active part in the casting, that might mean Xiao has a deeper involvement with Peter's Tom Holland . Does it make you want to go back and rewatch Iron Man 2 from the beginning? Submit your Newswire tips here.
    Sailing - New Zealand pedal their way to brink of America's Cup glory

    Sailing - New Zealand pedal their way to brink of America's Cup glory

    He said it was a great opportunity for the shore team to work on its boat. "We're really happy with the package they've given us". Even with the wide margin in Race 5, Oracle Team USA looked faster than it did in getting humbled in four races last weekend.
  • Federal Bureau of Investigation  agent is indicted in shooting during OR  standoff

    Federal Bureau of Investigation agent is indicted in shooting during OR standoff

    Astarita faces three counts of making false statements on the day of the shooting and the day afterwards. Asked why Astarita may have lied, Williams said: "I suspect that question will be answered in court".
    Islamic State orders businesses to use its currency

    Islamic State orders businesses to use its currency

    The Kurdish fighter demonstrates her bravery after the bullet hit, as she does not even appear to be remotely scared or surprised. Omar Abou Layla, the head of Deir Ezzor 24, said 15 bodies, including those of women and children, were recovered in the village.
    Donal Logue's Son Is Missing: Actor Turns to Social Media for Help

    Donal Logue's Son Is Missing: Actor Turns to Social Media for Help

    The other said, " I hope the fact that the tweet about your son has been removed, means that he has been found safe ". The 16-year-old child of actor Donal Logue has gone missing somewhere in New York City.


Popular

Weather conditions aid firefighters in Arizona
Spencer Cox toured the fire's perimeter in a Blackhawk helicopter and spoke with reporters afterward at the Brian Head resort. Earlier in the evening, the department said almost 400 firefighters by ground and air were working to contain the fire.

Stephen Colbert laughs about Sean Spicer losing his job
It was reported earlier this week that the president said that the bill the House of Representatives passed was "mean". Spicer also defended the decision to hold off-camera, non-recorded briefings, as he did yesterday.

European Stocks Dented by Surge in the Euro
Benchmark 10-year notes US10YT=RR last fell 18/32 in price to yield 2.1998 percent, from 2.137 percent late on Monday. When they end, rates should rise, meaning higher costs for longer-term borrowers such as people with house mortgages.

Israel hails PM Modi's forthcoming visit to the nation
Modi and Trump spoke in the Rose Garden Monday after a bilateral meeting with senior members of their administrations. It was not clear whether the terrorist designation of Salahuddin signals a tougher US policy toward Pakistan .

QTS Realty Trust, Inc. (NYSE:QTS) Reviewed By Analysts
Now Urban Edge Properties $27.00 target price is just $1 shy of the official lowest sell-side analyst price target on Wall Street. The Company conducts its business through First Potomac Realty Investment Limited Partnership, its operating partnership.