- Blue Apron's temporary pandemic-boosted surge seems to be over. Shares have nearly sliced in half since the start of the year.
- A recent secondary offering priced at $4.25 is also dampening sentiment.
- The company will raise $20 million in gross proceeds from this sale, a necessary boost to a thin balance sheet.
- However, for a company with a <$100 million market cap, this move will be extremely dilutive.
- Fundamentally, comps will get much tougher heading into Q2 and Q3, plus unknown consumer buying trends post-pandemic.
For further details see:
Blue Apron: Going Back Into The Dumpster