Blue Apron is the most popular meal kit delivery service around. For $59.94 a week, the company sends consumers ingredients to make three meals for two people. They do all of the prep work, provide recipe cards, and deliver in a day or less. For those who want to learn how to cook or can’t bother to shop for groceries, the company’s fast and easy delivery service is a godsend. It’s also a great buy for people who want to cut back on dining out (though not as economically friendly as you might think).
Blue Apron is also a private company, meaning you can’t currently buy stock in them. Fortunately, this will change in the next two weeks, as the company plans to go public and offer their own stock. This will let investors get in on the ground floor with the company, potentially making sweet gains if Blue Apron outperforms expectations and keeps adding customers.
Before you think about investing in Blue Apron, you need to know the basics of the stock’s launch plan. Fortunately, we did the hard work and answered all the questions you might have about the company’s initial public offering.
When will Blue Apron go public?
Nothing is set in stone, but the company’s stock will likely debut on June 28th.
What symbol will Blue Apron trade under?
The company will use the symbol $APRN on the New York Stock Exchange.
How much will it cost to buy $APRN?
Shares of $APRN will cost anywhere between $15 to $17 for investors taking part in the initial public offering. Shares will likely cost a bit more once the stock is open to everyone hours after the initial offering.
How much will Blue Apron be worth when they go public?
By selling stock at $17 or under, the company will be worth at or around $3 billion.
Why is Blue Apron going public, and how much money are they raising?
Blue Apron wants to raise $510 million by selling shares of their stock. This money will help them expand marketing efforts, decrease operating costs, and increase subscribers. This influx in money will hopefully help them become profitable.
Is Blue Apron profitable?
No, but they could be. The company currently loses money despite making millions in subscription fees and add-on costs. Their marketing costs and shipping costs are particularly high. The company’s revenue is growing each year, but their losses are getting bigger, too. By adding more customers and cutting costs, the company could eventually (maybe) become profitable.
Are there any obstacles in Blue Apron’s path to success?
But of course! Blue Apron isn’t the only meal kit delivery service in existence. Hello Fresh has just as many subscribers and reaches more territories, as do dozens of other similar services. They also have to compete with grocery delivery services like AmazonFresh and Peapod. With Amazon’s recent purchase of Whole Foods, the online grocery delivery game will probably get significantly more competitive, which could put Blue Apron’s business model in question.
Should you invest in $APRN?
If $APRN becomes profitable, the stock’s value will increase. If the service struggles to achieve profitability, the stock will likely decrease in value over time.
If you think the company can achieve profitability with an extra $510 million, you might want to invest when their stock launches. To do this, you simply need to contact your broker or file up your brokerage app when the company goes public, search for $APRN, and buy shares.
If you think Blue Apron will flail in a competitive market or fail to reach profitability, simply invest elsewhere.