What exactly is the bull case here? The current business model has proved deeply hostile to shareholder value creation with current bulls being faced with a wall of dilution to plug a liquidity gap that threatens the company with bankruptcy.

The online meal kit company held cash and equivalents of $33.5 million as of the end of the fourth quarter, enough to form a cash runway that's under two quarters against fourth-quarter cash burn from operations. This is more than 175% of its current market cap and comes against cash burn from operations that stood at $23.4 million for the fourth quarter. The number of shares outstanding has ballooned by 215% over the last 3 years and is set for an even greater increase with the company set to sell up to $70 million worth of shares through an at-the-market equity program under its existing shelf offering filed with the SEC last November. Data by YChartsĪt the core of its decline is Blue Apron's existential dependency on selling stock to meet is quarterly cash needs. The company also now faces the specter of being delisted by the NYSE or engineering another reverse stock split after a 1 for 15 stock split back in 2019. To be clear, Blue Apron's price-to-sales multiple at 0.04x is a huge market signal that a Chapter 11 filing is a 2023 possibility against total debt of $60.1 million on its balance sheet as of the end of the fiscal 2022 fourth quarter. The company is down over 98% from its IPO price with its now $40 million market cap set against fiscal 2022 revenue of $458.5 million. Blue Apron ( NYSE: APRN) is down 27% year to date to extend a decline that has left the company trading on a market cap that implies near-term bankruptcy.

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