Blue Apron Holdings Inc (NDAQ:APRN) | Stock Discussion (2024)

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What is going on with Blue Apron stock? ›

Food delivery company Wonder says it's closed its acquisition of Blue Apron. Wonder Group, a food delivery company, said Monday it has closed its acquisition of meal-kit provider Blue Apron Holdings Inc. APRN, -0.08%, clearing the path for that stock to be delisted.

The 3 analysts with 12-month price forecasts for Blue Apron Holdings stock had an average target of 41.67, with a low estimate of 17 and a high estimate of 84. * Price targets were last updated on Aug 10, 2023.

The average price target is $13.00 with a high forecast of $13.00 and a low forecast of $13.00.

As a result of the Merger, Blue Apron will become a wholly owned subsidiary of Wonder. Blue Apron's Class A common stock will be delisted from The Nasdaq Stock Market.

Since Blue Apron went public in 2017, its fortunes have dwindled with a number of problems, including layoffs, failing to grow its customer base and competition from larger companies, such as Amazon and Kroger.

Financial Disaster

Since its IPO in July 2017, Blue Apron's financial downfall has been rapid. Scholar Kevin Down finds that “in their first month and a half of trading, shares in the company were down nearly 50%” (Yahoo Finance). As hundreds of employees were laid off, the company's CEO and COO both stepped down.

According to the 3 industry analysts covering Blue Apron Holdings, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$3.6m in 2025.

In 2022 Blue Apron revenue shrank by 2% to $458.5 million, while the company's losses soared. Blue Apron's net loss reached $109.7 million in the year, even worse than what it saw in 2021.

If an investor owns a stock, but that stock gets delisted, they still own the stock, but its value is likely to decline significantly. Mandatory delisting is usually viewed as a sign of financial distress and can sometimes signal a forthcoming bankruptcy, which tends to decimate a stock's value.

What's going on with the Blue Apron? ›

Meal kit business Blue Apron announced Friday it has agreed to sell itself to food and restaurant company Wonder Group, founded by entrepreneur Marc Lore, for $103 million. The sale caps years of ups and downs for Blue Apron, once a leader in at-home meal deliveries.

Virtual food hall concept Wonder on Monday completed its acquisition of meal kit company Blue Apron for $103 million, or $13 a share. The deal takes the struggling Blue Apron private and gives Wonder a new revenue channel as it pursues its goal of becoming a “super app for mealtime.”

The Company expects to achieve adjusted EBITDA profitability in the second quarter of 2024. By year-end 2024, Blue Apron expects to be adjusted EBITDA profitable and to achieve year-over-year revenue growth.

Virtual food hall concept Wonder on Monday completed its acquisition of meal kit company Blue Apron for $103 million, or $13 a share. The deal takes the struggling Blue Apron private and gives Wonder a new revenue channel as it pursues its goal of becoming a “super app for mealtime.”