Blue Apron Holdings Inc (NYSE: APRN) is having a rough start to the day today in the pre-market hours after news broke that Amzon.com, Inc. (NASDAQ: AMZN) is continuing to work into the company’s industry. Through recent years, we’ve watched as Amazon has caused some serious industry disruption in the retail market, leading to the term “the Amazon effect” being coined. As is normally the case, our partners at Trade Ideas were the first to alert us to the losses. At the moment (9:24), APRN is trading at $6.87 per share after a loss of $0.49 per share or 6.66% thus far today.
APRN Is A Victim Of The Amazon Effect
As mentioned above, Blue Apron Holdings is having a rough day in the market as reports surface that Amazon is going to be getting into the company’s industry. At the moment, various reports are breaking out surrounding the idea that Amazon is making its way into the meal-kit delivery service, an industry that APRN has largely dominated through the years.
However, if there’s one thing that we know about AMZN, it’s that when the company gets involved in an industry, it quickly becomes a disruptive force. After all, the company is even giving WMT a run for their money.
The fear here for APRN investors is that Amazon will continue its record of success and dominate the meal-kit delivery industry shortly after they get into it. Of course, this would prove to be painful as it would ultimately cut into Blue Apron’s revenue.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on both APRN and AMZN. After all, we’re interested in seeing what Amazon does with the meal-kit delivery industry and how it will effect Blue Apron. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!