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Blue Apron Is Crashing (Again) After Analyst Slaps $2 Price Target On New IPO

Blue Apron is trading down 7% in the pre-market, down over 30% from its IPO-day highs and down 25% from the IPO/Open price... in 10 days. Today's decline, following SNAP's crash yesterday, seems catalyzed by the first analyst rating since the IPO.. at $2!

As Bloomberg reports, the stock got its first analyst rating since the June 28 IPO; the company’s business model has severe cost challenges and intensifying competition,:

Northcoast Research analyst Chuck Cerankosky writes in note...

  • Rates APRN new sell, PT $2 is just above pro forma net assets per share
  • Sales growth seems to be dependent upon promotional discounts; very high labor and shipping costs

And that just piled on APRN's problems...

 

And while we are at it, SNAP is trading down another 4% pre-open in the low $16s...