How much does it cost Blue Apron to land a new customer? About $500. How much is an average customer worth? About $400 in the lifetime of the relationship. Blue Apron loses $100 on every customer.
More: “How does this thing make any sense?” I asked my friend.
h/t KP
As central banks drive interest rates to zero, it should not be surprising that business plans that provide zero return to investors can get funding. When rates go negative across the world, don’t be shocked to see intense competition between businesses vying for investor capital on the basis of who can destroy the least amount of capital.
Then there’s Tesla that has squeaked out a profit in a few quarters that was followed by much greater losses. A cynic might suggest that the quarterly profits were manufactured like Trudeau’s employment number with an election coming. Tesla has had greater market capitalization than some major car manufacturers and has never produced an annual profit (and likely never will?) and yet is the darling of many investors.
Speaking of which … can someone please explain … talk slowly for my benefit … the Chipotle Mexican Grill, Inc. stock price? $772./share!!?? AYFKM!!!
How? Why? How many future-dead customers are flowing across our nonexistent Southern border with $5.00 for a Burrito + salmonella? Investing in the reconquista?
So are they stupid or was the plan that after all these things caught on with the cool kids that the rest of us would just grow man buns and rush out and try them? I guess I answered my own question.
The plan was to show rapid growth, go public and sell your shares before the whole thing falls in on itself. It’s today’s answer to penny stock mining promotions.
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sounds like the government.
“As far as I’m concerned, we should
turn over the civil service to
the folks who can make this sort
of shit happen.”
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“How much does it cost Blue Apron to land a new customer?”
What is a Blue Apron? Oh. WTF?
Dear urban hipsters: get a copy of James Beard and go to the supermarket.
These cult stocks attract all kinds of investors without showing any kind of returns while there are many good Oil Patch stocks with sustainable healthy dividends and enough free cash flow to reduce debt and buy back shares but can’t attract more shareholders. The world is messed up! I like Allan Greenspan’s term “irrational exuberance”.
lOOking at the verrrrrry loooooooong term, what will the powers-that-be stand to gain, knowing virtually EVERYTHING about
the freebie seeking crowd’s spending behaviour? hmmmm?
when the are NO other players, and the ‘entry fee’ utterly out of reach. except for the megabig outfits.
liberal/unDork logic at work in those service money loosing enterprises
But 2+2=5 in my culture. So it’s awl guud. “K”.
The dot com bubble bursting wasn’t the end but just the beginning. It’ll be the same when the next bubble bursts. You can bet that Uber and the like are just the tip of the change we’re going to see. MOAR
Millennials, starving in the corners of their lofts, because their food delivery, and human delivery mechanisms crashed.
Schadenfreudealishish.
The only entity that can continue running without making a real profit is government. The power of the press or today the ability to create digital money.
I agree that financial markets are crazy, and that things will not end well. A case, a small case, in point: the latest indications this morning are that China is backing away from a China/US trade deal stage #1, and that the Chinese military will be moving into Hong Kong to kill a goodly numbe of protestors. Most of the leading economic indicators are negative. And a number of US firms are downgrading future earnings, and CN National is now on strike. Yet as I write this at 7:45 am Eastern time, the Dow futures are up 43 points. The markets are steadily going up crazily, why no one knows. Things will not end well.
Because the market has confidence… which will continue, until it doesn’t, and then there will be a correction….