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4 months ago | World Today

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Finance: Amazon deals yet another huge blow to Blue Apron (APRN)

Amazon and Jeff Bezos delivered another blow to the much-maligned Blue Apron after filing a trademark application for meal kits.

Blue Apron's stock price is falling even further after a report that Amazon filed a trademark application for meal kits.

The hits just keep on coming for Blue Apron.

After already suffering the indignity of trading below its offering price every day since its initial public offering 2 1/2 weeks ago, the meal-kit retailer now faces a new hurdle — and surprise, surprise, Amazon is once again the culprit.

The Jeff Bezos-led juggernaut filed a trademark application on July 6 for "prepared food kits," as reported by TheStreet.com's Laura Berman early Monday morning.

Blue Apron's stock sank 8.3% to $6.75 a share in premarket trading. It now sits roughly 33% below its IPO price of $10 a share.

It's just the latest Amazon-fueled hit absorbed by the flailing Blue Apron, which took a cleaver to its IPO range in the week before pricing following Amazon's $13.7 billion acquisition of Whole Foods. Many potential investors identified the possibility of more competition in the food-delivery industry and ran the other way. As such, Blue Apron trimmed its IPO range to $10 to $11 a share, down from $15 to $17.

Blue Apron's current price, however. looks downright bullish compared with the $2-a-share price target it received from Northcoast Research, the first Wall Street firm to weigh in on the company.

While perhaps the most extreme current example, Blue Apron's plight highlights the unfortunate reality facing many companies in the retail industry: Amazon is coming, and there's nowhere to hide.

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Local AFP is a Reporter at Meets Media, a digital journalist who reports on World Today and some other section of our website.

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