Blue Apron Holdings Inc. (NYSE: APRN) is a direct meal-to-customer delivery company, standing as a pioneer in its domain. Despite the strong enthusiasm its concept received upon launch, it is fast descending towards failure, as confirmed by the most critical of metrics. APRN stock has shed over 86% of its price in the last 12 months alone
Blue Apron Prospects Further Weaken After Poor Results
According to its latest earnings release, Blue Apron Holdings Inc. (APRN) has continued its drastic performance, seeing its quarterly revenue shrink YoY by 11.7%. This weakening growth came as the company’s total number of customers dropped from 350,000 to below 323,000. It evidently continues to face the pressure of a rising inflation environment and struggles to reel in first-time customers. The pressure continues to mount as Blue Apron’s liquidity position fast deteriorates, with the latest quarterly cash bleed amounting to almost $23 million.
Broader Challenges for APRN Beyond the Immediate
Bearish analysts are pointing out that APRN is not only struggling due to the macro headwinds it faces, but also due to the fact that the market largely perceives It as a fad. In fact, its market share has been shrinking since 2019, given its inability to adapt according to the needs of its customers. Competitors such as HelloFresh are increasingly posing a threat to Blue Apron, as they leverage their logistical strengths to scale up, in proportion to demand. Smaller local players are also proving to be a more favorable choice of customers, given fast delivery times, lower costs, and a higher degree of overall reliability.
Conclusion
The last 12 months have been deadly for APRN stock. From its high of $9.21, the stock is trading seriously close to its 52-week low of $0.61. This price trajectory is merely an indicator of the market’s fast-falling confidence surrounding Blue Apron, with the macro-economic challenges only accelerating its downfall.
