The omnipresent juggernaut Amazon is back in the news again, taking the competition’s ball, wrapping it in Prime shipping tape and not giving it back. In June, they announced their acquisition of Whole Foods for $13.7 billion. As a result of this, customers were indifferent and competitors felt the heat as their stocks rose and fell through the day. However, there was one competitor that got the shorter end of the stick.
Blue Apron has existed as a private company for while but recently they decided to go public. By recently, I mean on the same day Amazon decided to make this announcement. Just to break this down even further, let me briefly explain what a IPO is and what it stands for. IPO means “initial public offering.” Initial public offering is the first time that the stock of a private company is offered to the public. Blue Apron’s IPO was initially forecast at $15-$17 per share but after Amazon’s announcement it plummeted to $10 per share.
On the Monday a week after Amazon’s announcement, they added insult to injury. Amazon Technologies Inc. filed a meal-kit trademark. This trademark states that “prepared food kits composed of meat, poultry, fish, seafood, fruit and/or vegetables . . . ready for cooking and assembly as a meal.” Yes, you read that correctly. Amazon filed a patent on something that is already in existence. Regular Amazon boss moves.
When everything was all said and done Blue Apron’s stock lingered somewhere around $6.66. Yikes! That means that it went down 9.4 perfect. The good news for Blue Apron is that they are still in the game and have enough money to stay afloat for a year to put together their next plan of action. Everybody isn’t just falling in line to Amazon. Netflix is currently beating the odds, reaching new subscriber levels that analysts said they would never reach. Their stock also rose 10%. Amazon is setting themselves up to be king of all domains but the competition is not going down without a fight.