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IPO Stocks to Sell Now: Blue Apron (APRN)

IPO Stocks to Sell Now: Blue Apron (APRN)
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Blue Apron Holdings Inc (NYSE:APRN), the convenient food kit delivery company, hit the market at absolutely the wrong time. Its IPO was just days after, Inc. (NASDAQ:AMZN) announced it was buying Whole Foods Market, Inc. (NASDAQ:WFM) for $13.7 billion — a deal that’s expected to alter the grocery landscape for years to come.

Down almost 30% from its $10 IPO price, things have gotten so bad for Blue Apron’s stock that Northcoast Research analyst Cerankosky has given it a 12-month price target of $2. Ouch!

The problem here is Blue Apron’s margins are shrinking at precisely the wrong time. It’s expected that Amazon will enter the food delivery business using Whole Foods as its conduit and when it does, food kits may become a thing of the past.

Blue Apron doesn’t make money and probably won’t for a long time, if ever. It’s a must sell.

Article printed from InvestorPlace Media,

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