Blue Apron Falls Under $1 as Sell-Off Shows No Signs of Stopping

(Bloomberg) -- Blue Apron Holdings Inc. extended its lengthy decline on Tuesday, with shares dropping below the psychologically important $1 level.

The stock dropped about 9 percent to 92 cents, the latest in a series of record lows for the at-home meal kit company. The stock is down by more than 75 percent since mid-July, and it has shed half its value since the end of August.

Blue Apron Falls Under $1 as Sell-Off Shows No Signs of Stopping

Blue Apron has struggled since going public in June 2017, losing 90 percent of its value since then, but its problems pre-date the IPO, the price of which had to be cut by about a third as the company faced the competitive threat of Amazon.com’s acquisition of Whole Foods. The company has also faced problems with fulfillment center delays.

In November, the company reported third-quarter revenue that missed expectations. Blue Apron also said it would cut about 4 percent of its work force, a move the company suggested would lead to profitability in 2019. Analysts weren’t convinced, however, and the results were followed by a number of downgrades, including from Canaccord, Guggenheim and Morgan Stanley, which wrote that “declining revenue on an already subscale business makes it even harder for us to envision a pathway to positive profits.”

Currently, 13 analysts rate Blue Apron as a hold, while one firm -- Gabelli & Co -- rates it a buy. No firms rate it a sell, according to Bloomberg data. The average price target is $1.59.

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