IPO? More like IP-Oh-hell-no.
Without a doubt, Blue Apron Holdings Inc. (APRN) has been an awful stock to own post-IPO. Ahead of the open Thursday, shares of the billion-dollar meal-in-a-box company had shed more than 37% of their market value since listing back in June.
The biggest factor in the fall over the last few months? A hefty customer churn rate and no shortage of competing services ranging from startups to Amazon.com (AMZN) .
And shares are adding to that in a big way Thursday, with another 15% selloff as of this writing.
There is a small difference Thursday, though. Instead of just hopes, fears and anxieties to drive the price action, investors finally have hard earnings data on Blue Apron for the first time. And it doesn't look good. We'll take a look at the results -- and turn to the chart for a look at where shares could end up next.
First off, the earnings numbers.
Shares of Blue Apron posted a mixed bag for the third quarter, capping off the firm's first earnings report as a publicly traded company. Blue Apron beat revenue estimates, generated $238.1 million vs. the $235.8 million that analysts were expecting, on average. But the firm lost 49.4 cents per share for the quarter, a wider loss than the 29.7 cents that Wall Street was looking for.
At this stage in the game for Blue Apron, making revenue numbers are more important than hitting profit estimates -- and that fact is playing out in the price action this morning.
The question now is, where are shares of Blue Apron likely headed from here? For that, we're turning to the chart for a technical look.
It doesn't take an expert technical trader to figure out what Blue Apron's price trajectory has been so far -- shares have been backsliding down and to the right since day one. Critically, that price action has been orderly. In other words, Blue Apron hasn't been an impossible-to-predict basket of volatility during its decline; instead, the downtrend in shares has been clear as day.
In the past couple of sessions, shares had established the $5.70 as a key support level: a sort of line in the sand that shouldn't be crossed.
Well, it's getting crossed in a big way today with the 15% post-earnings plummet in shares. Even worse, today's big selloff doesn't even extend Blue Apron through the downside of its price channel. In other words, shares could still have further to fall before they're able to establish some semblance of support again.
If you're looking for a "bargain" buying opportunity in Blue Apron, your best bet is to stay away for now. Shares could get a whole lot cheaper before the selling shakes out.
More of What's Trending on TheStreet: