Two newly public tech companies reported earnings on Thursday, and both were ugly for their investors.
Meal-kit preparer Blue Apron missed earnings expectations by a wide margin in its first earnings report since going public in late June. It reported a 47 cent per share loss instead of the expected 30 cent loss, blaming high customer acquisition costs and staffing a new distribution plant in New Jersey.
The stock dropped 17 percent and is now trading at about half its IPO price.
The stock dropped about 17 percent after hours. It's now off about 33 percent from its IPO price.
Blue Apron and Snap have a lot in common. They're consumer focused. They have devoted followers. They're losing money hand over fist.
And both were targeted directly and aggressively by two of tech's biggest companies.
Between the time Blue Apron filed for its intial public offering, on June 1, and when it went public, on June 28, Amazon announced that it was buying Whole Foods. The speculation that Amazon would use the purchase to improve its home delivery service sent demand for Blue Apron's IPO down, and the company slashed its IPO range from $15-$17 down to $10-$11.