Blue Apron Tumbles To Record Lows After Slashing Workforce By 24% (Just 36 Days After IPO)

Tyler Durden's picture

As one veteran market participant exclaimed: "Seriously, how is that not illegal?"

Just 36 days after the company IPO'd to much CNBC-based applause and "the IPO market is back", Blue Apron shares are languishing at record low $6.01 (down 45% from its highs of $11) drastically below the IPO price of $10.

It is tumbling to fresh lows today after announcing - ahead of its earnings next week - that the company is cutting 1,270 jobs from its New Jersey facility according to a public notice Friday. It had 5,202 workers as of March 31.

Last month the company said Chief Operating Officer and co-founder Matt Wadiak is stepping down.

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SloMoe's picture

Who were the underwriters for this turd? Hang 'em high...

City_Of_Champyinz's picture

Seriously, this is the very definition of shit show.

Buckaroo Banzai's picture

Feels like the Summer of 2000 all over again. The unbridled optimism is starting to crack. Blue Apron seems to be collapsing even faster than Pets.com did.

2_legs_bahhhhhd's picture

As usual, the banksters get paid, then the public gets fucked.

Same old story, same old song and dance my friends.

NoDebt's picture

"Seriously, how is that not illegal?"

I remember when I used to ask stupid-ass questions like that.

 

TeamDepends's picture

If you, like us, live 20 miles from the nearest grocery store, are extremely busy, and love to cook then these services make all kinds of sense. Perhaps the plethora of competition springing up is BAs biggest problem, with their "try us" special offers. We tried some and while good, didn't seem as intent upon sourcing the highest quality, local meats and veggies as BA.

Buckaroo Banzai's picture

Delivering fresh, perishable groceries to people's doorsteps is a fucking retarded business model. Didn't we learn anything from WebVan?

a Smudge by any other name's picture

Hey I heard rats, worms and cochroaches think it's a great idea. It's all about perspective my man, perspective.

Anon2017's picture

Same way the ads on this web site are not illegal. A fool and his money are soon parted.

AMS51248's picture

Mongan Stanley and Barclays were among the leads, and you're right they should be sued.  You have to be pretty naive to believe that they had no knowledge of the problems boiling below the surface at Blue Apron. It's appalling that the VC's cash out and everyone else gets stuck with this obvious loser

Ghost of Porky's picture

But..but...muh KALE!

John Law Lives's picture

"...the company is cutting 1,270 jobs from its New Jersey facility according to a public notice Friday. It had 5,202 workers as of March 31."

Anything to try and pump the stock price to benefit the insiders.

FUBAR 

blueskyranch's picture

Blue Apron - order the menu recipie, ingredients, shipping. You cook it all at home. Meal is as good as eating out. Eating out is less expensive. How could this go wrong? [sarc]

TheSilentMajority's picture

It would be pleasing to see a class-action lawsuit brought against the penguins who put together this pump n' dump IPO.

lasvegaspersona's picture

nah...'investors' are sofisticated. They all knew this was just a gamble....like ordering your food from a New Jersey company.

People buy lottery tickets too ya know....

SimmerDown's picture

RELAX everyone. Goldman says it's a buying opportunity. Marketwatch 7/25 (just last week)

Goldman Sachs analysts initiated the stock at buy, with an $11 price target. While they note that Blue Apron is up against at least 20 competitors in the U.S., backed by $345 million in venture investment, they say the competition is actually a good thing. 

“We see this hyper-competition as the primary source of Blue Apron’s rising costs and slowing growth and an eventual key to both improving,” wrote Heath Terry, lead analyst on the report. 

In the early stages, this competition creates more volatility for the stock, but they see competition gradually dying down, as the economics and investment levels are not sustainable. They note that this was the case in the on-demand delivery space, with Sprig, Maple and SpoonRocket closing shop. 

With less competition, Blue Apron should be able to reaccelerate its growth, helped by new products and upgrades to its logistics. Still, they notably do not discuss Amazon as a competitive threat.

Seasmoke's picture

Ponzi. It's what for dinner. Delivered to your door !!

Seasmoke's picture

Good thing they didn't fire these workers on July 31st. That would have been awful news for the USD. And we can't have that. But August 4. No problems. You're Fired !!!

Too-Big-to-Bail's picture

Surprised it is still above $6 per share to be honest

zipit's picture

Google "blue apron" and look at the top of the page. Ads for 50% off for them and their competitors.

Gordon_Gekko's picture

These are the kind of retarded businesses and companies Fed's fake paper money engenders. The quality of money drives the quality of companies - horribly POOR.

Pigeon's picture

This needs to be repeated 1000x times

homiegot's picture

Suckers are plentiful. Suckers never learn.

gosh's picture

I recently tried out Blue Apron.  I ended up cancelling because it took too long to make the meals with too many steps.  Some of the items - such as shrimp - are hard to cook for first timers.  I was very surprised because basically this is the same as going to the grocery store with a recipe.  I see many people cancelling this.

HRH Feant2's picture

$6 per share? Anyone know the record for a stock to go from being listed to delisted? Is Blue Apron a winner, place, or show?

Dan'l's picture

The new pets.com

Snaffew's picture

the veteran market participant questions the ethics of blue apron but is ignorant of the rest of the companies/trading institutions/banks and the fed involved in the current market ponzi scheme?  How is this not incompetent?

Chippewa Partners's picture

Not a corporate chieftain alive who understands the GOOGLE Dutch auction!

Chippewa Partners's picture

Meanwhile the lead bankers are wearing blue aprons to serve up lobsters and caviar in the Hamptons!

Slimjones77's picture

This article is a little misleading...The company's employees were given the option to transfer to the new facility located in Linden, New Jersey, 15 miles away. The 1,270 cut jobs indicate those who decided not to transfer, the company said. They said they have until October to decide so this number could even decrease. Just saying.....that should have been included in this article.

Pernicious Gold Phallusy's picture

I would guess their target audience is people too lazy to go to the store on the way home from work. Sadly, these people are also too stupid to cook mac & cheese from the blue and yellow box, and think Domino's pizza is the best.

silverer's picture

IPO's are now the zenith of a company's performance. You IPO, than make your getaway. Success! Then head for the hookers and blow.

Dg4884's picture

LOL.  Maybe I should try that with my company.  Quick cash, off to St. Kitts.

cpnscarlet's picture

I'm sorry, but if you don't have time all week to shop for groceries, you don't have the flippin time to cook either. And if you did, how much effort does it take to search for a recipe on the net?

Everyone is lying's picture

Didn't Amazon get into this space?

 

When a giant Monopolist gets into your nitch space, of course your stock will tumble.

 

That is what Monopolies do.

 

 

jerseychris's picture

No due diligence?  GS now a bucket shop.