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Shareholders in Blue Apron Holdings (NYSE:APRN) have lost 66%, as stock drops 12% this past week

·3 min read

If you love investing in stocks you're bound to buy some losers. Long term Blue Apron Holdings, Inc. (NYSE:APRN) shareholders know that all too well, since the share price is down considerably over three years. Sadly for them, the share price is down 66% in that time. The more recent news is of little comfort, with the share price down 31% in a year. Furthermore, it's down 24% in about a quarter. That's not much fun for holders.

Since Blue Apron Holdings has shed US$29m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.

See our latest analysis for Blue Apron Holdings

Because Blue Apron Holdings made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last three years Blue Apron Holdings saw its revenue shrink by 14% per year. That is not a good result. With revenue in decline, and profit but a dream, we can understand why the share price has been declining at 18% per year. Of course, it's the future that will determine whether today's price is a good one. We don't generally like to own companies that lose money and can't grow revenues. But any company is worth looking at when it makes a maiden profit.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
earnings-and-revenue-growth

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Blue Apron Holdings stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

Blue Apron Holdings shareholders are down 31% for the year, but the broader market is up 9.7%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Shareholders have lost 18% per year over the last three years, so the share price drop has become steeper, over the last year; a potential symptom of as yet unsolved challenges. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Blue Apron Holdings has 4 warning signs (and 1 which is significant) we think you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.