Snap and Blue Apron have a lot in common, despite being quite different businesses. The first is a social messaging app and the other is a meal kit delivery service, but both companies were highly anticipated tech IPOs that went public this year — and both are currently trading at more than 40 percent below their IPO price.
Snap, whose second-quarter earnings come out after market close, has been taunted by bigger rival Facebook, which keeps copying its products. Its first-quarter results missed analysts’ expectations, sending the stock down.
Blue Apron also posted a disappointing first earnings after it reported unexpected costs contributing to a net loss of $31.6 million. The company anticipates losses into next year. Blue Apron has been dogged by Amazon, which decided to try its hand at meal delivery kits as well and has pushed further into the food market with its acquisition of Whole Foods.
This article originally appeared on Recode.net.
Will you support Vox’s explanatory journalism?
Most news outlets make their money through advertising or subscriptions. But when it comes to what we’re trying to do at Vox, there are a couple reasons that we can't rely only on ads and subscriptions to keep the lights on.
First, advertising dollars go up and down with the economy. We often only know a few months out what our advertising revenue will be, which makes it hard to plan ahead.
Second, we’re not in the subscriptions business. Vox is here to help everyone understand the complex issues shaping the world — not just the people who can afford to pay for a subscription. We believe that’s an important part of building a more equal society. We can’t do that if we have a paywall.
That’s why we also turn to you, our readers, to help us keep Vox free. If you also believe that everyone deserves access to trusted high-quality information, will you make a gift to Vox today?
Yes, I'll give $5/month
Yes, I'll give $5/month
We accept credit card, Apple Pay, and
Google Pay. You can also contribute via
