Blue Apron Shares Sink After Amazon Made This Big Announcement

Looks like Amazon may one day take over the world and as a result, many other companies will come crashing down.
Blue Apron felt the burn on Monday as its shares sank when Amazon announced that it would be getting into the meal-kit business.

Blue Apron just had its debut not too long ago in late June, but is now down almost 30% month to date and hit an all-time intra-day low on Monday.

According to The Sunday Times citing an uncovered filing, Amazon has registered a trademark in the U.S. for a service that has the description, “We do the prep. You be the chef.”

Blue Apron is a meal kit delivery service so it’s no wonder investors showed concern when learning that Amazon would be stepping into the space.

David Seaburg, head of sales trading at Cowen and Co. and CNBC contributor, has said, “Although it’s a neat concept, the dominant players within the space will compete at a level that won’t allow Blue Apron to be successful long term,” Seaburg told CNBC earlier this month. “It’s all about scale, it’s all about relevance. You look at Kroger, Whole Foods and Amazon. They can take this section of the market over from a price perspective alone in a very short period of time.”

Back in June, Blue Apron CEO Matthew Salzberg told CNBC’s “Squawk on the Street,” “We’re tackling a huge market, and we’re focused on the long term, quite frankly. The stock price today, whether it’s up, down, left or right, is really just the beginning of this new chapter in our company’s life.”

Disclaimer: We have no position in Blue Apron Holdings, Inc. (NYSE: APRN) and have not been compensated for this article.