In early Monday trades, Blue Apron shares plunged as low as $6.51, off more than 11 percent from Friday's close and almost 33 percent below their June 29 IPO price of $10 on the New York Stock Exchange.
Blue Apron's stock is likely to struggle once Amazon enters the meal-kit delivery market, CNBC's Jim Cramer said Monday. Amazon has registered a USA trademark for what looks suspiciously like a meal-kit service with the slogan "We do the prep".More news: How Dragon Ball FighterZ Could Come to the Nintendo Switch
Besides Amazon, Blue Apron's rivals include HelloFresh and Plated, which both ship boxes to customer's doorsteps with raw ingredients needed to cook home meals. "You be the chef". It's worth noting, however, that companies frequently file for trademarks they have no intention of using, either because they changed their mind or because it was just a nuisance filing aimed at keeping a competitor away from the golden words.
As Ruth pointed out, Blue Apron's customer acquisition costs are already out of control: "Blue Apron's marketing department is spending an exorbitant $94 per customer to get people to sign up for its service-and in the previous year, its customer growth rate has actually slowed". The stock was down another 10 percent Monday morning and dipped below $7.00 per share for the first time ever as investor concerns may have been confirmed.