Blue Apron Delivers Flat First Day on Stock Market | NBC 5 Dallas-Fort Worth
National & International News
The day’s top national and international news

Blue Apron Delivers Flat First Day on Stock Market

CEO Matthew Salzberg dismissed concerns about competition. He said in a TV interview Thursday that more competition will only help convince people to skip the supermarket and buy their groceries online

    processing...

    NEWSLETTERS

    Blue Apron Delivers Flat First Day on Stock Market
    AP
    Blue Apron CEO Matt Salzberg addresses company employees outside the New York Stock Exchange before the IPO begins trading, Thursday, June 29, 2017.

    Wall Street was not hungry for Blue Apron. The meal kit company's shares ended unchanged Thursday in their first full day on the stock market.

    The stock rose as much as 10 percent after its debut, but it ended Thursday at $10. That's the same at its initial public offering price.

    On Wednesday, Blue Apron lowered what it expected its shares to sell for, a sign that the company had trouble attracting investors for its IPO.

    Blue Apron ships boxes to customers filled with all the raw ingredients needed to make home-cooked meals. It has many rivals, including HelloFresh and Plated, and there are concerns that competition to deliver groceries to people's doorsteps will only heat up after e-commerce giant Amazon.com Inc. announced plans to buy organic grocer Whole Foods earlier this month.

    Rules Changing for Transgender Kids Hormone Therapies

    [NATL] Rules Changing for Transgender Kids Hormone Therapies

    In a series of tweets on July 26, President Donald Trump announced plans to ban transgender people from serving in the military "in any capacity." Trump cited "medical costs and disruption" as the reasons. His announcement comes just before the release of new, international medical guidelines that are expected to allow transgender children to alter their bodies at younger ages.

    (Published Wednesday, July 26, 2017)

    In some cities, Amazon already sells meal kits with recipes created by home goods mogul Martha Stewart.

    But CEO Matthew Salzberg dismissed concerns about competition. He said in a TV interview Thursday that more competition will only help convince people to skip the supermarket and buy their groceries online.

    "In some ways, Amazon is an ally for us in this fight," Salzberg told business news channel CNBC.

    Still, Blue Apron raised less money than it had originally hoped. The New York company sold 30 million shares in its initial public offering at $10 per share, raising $300 million. Last week, it expected the shares to sell between $15 and $17, which would have given the company as much as $510 million.

    But it lowered that range to between $10 and $11 per share on Wednesday. Blue Apron Holdings Inc. first filed to become a public company June 1, about two weeks before the Amazon-Whole Foods deal was announced.

    The IPO valued Blue Apron at about $1.9 billion.

    TSA to Implement New, Stronger Airport Screening

    [NATL] TSA to Implement New, Stronger Airport Screening

    The Transportation Security Administration is rolling out new and stronger screening methods for carry-on baggages at airports across the United States.

    (Published Wednesday, July 26, 2017)

    Salzberg, 33, co-founded Blue Apron five years ago. The company has never made a profit, and it reported a loss of $55 million last year, but its sales have soared. It posted revenue of $795.4 million for 2016, more than double its level the year before. It spent nearly 70 percent of last year's revenue on food, shipping and other expenses related to running the company, according to government filings.

    Blue Apron's cheapest kit, which makes four servings, costs about $48. Each box comes with pre-portioned ingredients such as raw meat, seafood and vegetables, as well as seasonings. There are also recipe cards to help customers cook up meals such as basil fettuccine or quinoa burgers. Blue Apron said it had more than 1 million customers at the end of March.

    The stock trades on the New York Stock Exchange under the symbol "APRN."