In our latest article on the company in July, we said that only lockdowns helped Blue Apron to extend its lifetime, however, we also believed that the company had reached its peak in Q2 and it’s unlikely that it’ll be able to show growth in the following quarters.

Also, Blue Apron has a solid history of underperformance and if it was not for the pandemic, then there’s a high chance that it would’ve gone out of business in 2020, as its management team has been actively selling its shares in bulk last February. The company has been losing customers and destroying shareholder value since becoming public in 2017 and to this day it fails to consistently make a profit. The Unsuccessful Turnaroundīlue Apron doesn’t have a unique business model, since all that it does is sells meal-prep kits across the United States. Considering this, we continue to short Blue Apron. It’s also unlikely that Blue Apron will be able to show a solid performance in Q4. The earnings results for Q3 showed that even during a favorable operating landscape its business failed to show a Q/Q growth.

There's a lack of leadership, constant underperformance, and an inability to consistently make profits. We believe it’s only a matter of time until Blue Apron ( NYSE: APRN) goes out of business.

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