Blue Apron, the meal-kit delivery service, went public earlier this summer. Since the IPO, the stock has cratered. The shares are down 50% in just over two months. At Young Research, we have long advised against participating in IPOs.
Don’t forget that for every buyer in the stock market there is a seller and when you are the buyer of an IPO, the seller is often the owner, CEO, and/or founder. If the founding CEO of a business is unloading shares on the public, do you really want to take the other side of that trade?
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Jeremy Jones, CFA
Jeremy Jones, CFA is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Jeremy is a contributing editor of youngresearch.com.
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