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Cramer Asks If Wall Street's Bullish Analysts Are Wrong About Blue Apron

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Cramer Asks If Wall Street's Bullish Analysts Are Wrong About Blue Apron
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Shares of Blue Apron Holdings Inc (NASDAQ: APRN) soared more than 15 percent on Monday after a handful of Wall Street analysts initiated coverage of the food delivery kit with bullish ratings.

The slew of initiation notes comes at a time when the standard quiet period has come to an end. But perhaps more important Blue Apron's stock has been crushed due to competitive concerns that Amazon.com, Inc. (NASDAQ: AMZN) is looking to make a big entrance into the space aided by its proposed acquisition of Whole Foods Market, Inc. (NASDAQ: WFM).

Cramer: Is No One Paying Attention

Are analysts ignoring reality? They might be, at least according to CNBC's Jim Cramer. All the bullish analysts are acting as if "nothing has happened" and Amazon's proposed acquisition of Whole Foods will have no impact whatsoever.

In reality, the "world has changed when Amazon bought Whole Foods," and the company is certainly not a beneficiary of the merger.

"Every time you buy this stock, if you do buy it, you are going to get hit by a whisper of Amazon as we all know there isn't anybody who has been able to say 'I'm Amazon proof' except one exception: Wal-Mart Stores Inc (NYSE: WMT)," Cramer concluded.

Finally, the argument could be made that Blue Apron boasts an impressive scale and this is the true barrier to entry — similar to the food delivery space where GrubHub Inc (NYSE: GRUB) emerged the ultimate winner. But at the end of the day, GrubHub beat out all of its rivals without the need to fight against the juggernaut Amazon — a difficult task that Blue Apron will have to contend with.

Related Links:

Goldman Steps Up As First Underwriter To Give Blue Apron A 'Buy' Rating

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Latest Ratings for APRN

DateFirmActionFromTo
Dec 2017BarclaysUpgradesUnderweightEqual-Weight
Nov 2017KeyBancInitiates Coverage OnSector Weight
Nov 2017Canaccord GenuityMaintainsBuy

View More Analyst Ratings for APRN
View the Latest Analyst Ratings

Posted-In: Analyst Color CNBC Long Ideas News Jim Cramer Initiation M&A IPOs Best of Benzinga

 

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