Quantcast

Amazon.com, Inc. (AMZN) Hammers Blue Apron Holdings Inc (APRN) With Meal Kit Trademark


Shutterstock photo

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Shares of Blue Apron Holdings Inc (NYSE: APRN ) fell 10% in Monday's trade after news broke that Amazon.com, Inc. (NASDAQ: AMZN ) has registered a trademark in the U.S. for a meal-kit business. That marks an all-time low in APRN stock just a couple weeks after its initial public offering.

Amazon.com, Inc. (AMZN) Hammers Blue Apron Holdings Inc (APRN) With Meal Kits Source: Shutterstock

AMZN stock, to its credit, was up fractionally.

Amazon has registered for a service with the motto, "We do the prep. You be the chef." The service will provide "prepared food kits … ready for cooking and assembly as a meal," according to Amazon's trademark application, which was filed on July 6.

The food kits will contain "frozen, prepared, and packaged meals," with "meat, poultry, fish, seafood, fruit and/or vegetables and also including sauces or seasonings, ready for cooking and assembly as a meal."

Amazon already offers meal-kits from third-party vendors, such as Tyson Foods, Inc.'s (NYSE: TSN ) Tastemakers and Sequential Brands Group Inc's (NASDAQ: SQBG ) Martha Stewart brand, Marley Spoon. Amazon has also experimented with food delivery through AmazonFresh, a grocery delivery service offered to Prime members for a monthly fee of $14.99.

This new venture by AMZN to sell its own brand of meal-kits could threaten Blue Apron's place as the largest meal-kit provider in the U.S. The biggest complaint among meal-kit subscribers is the high price, which Amazon could potentially solve.

Blue Apron stock has been consistently threatened by Amazon since its IPO last month because of Amazon's acquisition of Whole Foods Market, Inc. (NASDAQ: WFM ). The start-up's issue price was $10 on June 29th, valuing the company at $1.9 billion, which was down considerably from its original estimation of $3 billion.

Since its IPO, Blue Apron stock has fallen nearly 30%. Investors have worried about its ability to generate a profit. Today, the stock seems to be headed to a new all-time low.

APRN stock remains a Zacks Rank #3 (Hold), with a Value and Growth score of 'D.' The company is set to release its next quarterly earnings on August 10 before market open.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Amazon.com, Inc. (AMZN): Free Stock Analysis Report

Tyson Foods, Inc. (TSN): Free Stock Analysis Report

Whole Foods Market, Inc. (WFM): Free Stock Analysis Report

Sequential Brands Group, Inc. (SQBG): Free Stock Analysis Report

BLUE APRON HLDG (APRN): Get Free Report

To read this article on Zacks.com click here.

Zacks Investment Research

More From InvestorPlace

The post Amazon.com, Inc. (AMZN) Hammers Blue Apron Holdings Inc (APRN) With Meal Kit Trademark appeared first on InvestorPlace .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: AMZN , APRN , TSN , WFM , SQBG


More from InvestorPlace Media

Subscribe






InvestorPlace Media
Contributor:

InvestorPlace Media

Investing, Financial News








Research Brokers before you trade

Want to trade FX?





Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com