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Blue Apron (APRN) Investors Can't Stand the Heat, Stock Falls Again

Blue Apron APRN, one of the newest stocks on Wall Street, simply can’t stand the heat. The meal kit delivery service company tanked again on Tuesday, slipping further below its IPO price after one of the first significant analyst price targets was announced.

Shares of Blue Apron fell 6.88% in morning trading Tuesday. Today’s downward movement comes after Chuck Cerankosky of Northcoast Research gave the fledgling public company a $2 price target. The low price point comes in $8 below its $10 opening price point, which was already far lower than the initial $15 to $17 per share price Blue Apron hoped to go public at.

In his note, Cerankosky wrote that Blue Apron’s sales growth is dependent on discounts, which he sees as a highly unstable, non-growth business model. He also mentioned that high labor and shipping costs might negatively impact the meal delivery company.

One of the first big Wall Street “sell”...