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Blue Apron serves up high costs

2017年 8月 11日 Friday - 01:00

Blue Apron's stock plunged after the company reported a bigger-than-expected loss in its first quarterly report. Fred Katayama reports.

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Blue Apron's stock plunged after the company reported a bigger-than-expected quarterly loss. It also said it will book a bigger loss in the second half of the year. The meal-kit service company's first earnings since going public showed it's spending millions of dollars on marketing to sign up new subscribers. But it's struggling to squeeze enough revenue amid stiff competition. Renaissance Capital's Kathy Smith said in a note: "It is no surprise to see a strong sell off in Blue Apron stock as IPO investors typically expect a newly public company to meet or exceed expectations in the early quarters following the IPO." Blue Apron is fighting for market share with dozens of startups, including Hello Fresh and Plated. Recently, it gained another rival, Amazon. The e-commerce giant registered a trademark for a similar meal-kit service. That caused Blue Apron shares to tank just a few days after its IPO in late June.

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Blue Apron serves up high costs

2017年 8月 11日 Friday - 01:00