Respond to at least two of your peers with meaningful content.
1st students discussion
1. Sounds like they need to listen to whats going on @ Wall Street. There are always rumors of moves that are gonna be made or of acquisitions. I think that Blue Apron was about as ready to go as they could be due to the fact that they used Goldman Sachs, Morgan Stanley, Citigroup and Barclays to underwrite their IPO. I would assume that when you are being underwritten by these too big to fail banks they make sure that you are a viable commodity to invest in.
2. If Blue Apron did not IPO they could have used Private equity firms, Venture capital firms, Digital asset investments. The risk of taking on these funds would be losing too many shares so that you lose your company. As long as you have a majority you could still have the main voice and do business as usual but if you do not have the majority of shared you could be doing business but doing it as you are told by the investors.
3. Looks like Blue Apron who initially thought their stick would be offered between 15-17 the stock is currently sitting at 12.43(The high was 13.41). That is more than the 10 it opened at but its not close to the 15-17 they expected in the IPO. They have a small amount of growth but due to COVID i would have assumed them to have grown more due to all the shelter in place restrictions. The stock has not fared too much gaining at its top 13.41 and lPO at 10. The stock has made money but not at what Wall street likes. I would not invest in them because their growth seems to miniscule compared to like when i invest in AMD when they were below $5 and then they blew up and i sold off my stock in AMD after they shot up.
2nd students discussion
1. Before a company decides to go public they need to think about how their company is doing. Will going public give them the money to grow or cause them to fall further in debt? In my opinion Blue Apron was not ready for an IPO. They were losing money and not comfortable with what they originally wanted and that cost them investors which then made the stock drop even more.
2. Blue Apron could have gotten investments from venture capitalist, found an angel investor, or applied for a loan (
mycorporation.com).
- IPOs give companies access to capital while staying private gives companies the freedom to operate without having to answer to external shareholders.
- Going public can be more expensive and rigorous, but staying private limits the amount of liquidity in a company(www.investopedia.com(Links to an external site.)).
3. Blue Apron closed today at $11.49. It is still a public owned company. There stocks were doing better with the pandemic because people were ordering from them since they could not go out to eat. Since the country has started to reopen they are back down to just above where they started (techcrunch.com(Links to an external site.)). I would not invest in Blue Apron. It is unstable, as I see these kinds of things as fads. People will lose interest as soon as something better comes along.