How Blue Apron Became a Massive $2 Billion Disaster

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Squawk pod president. Trump's Day of pardons and commutations clemency for former Illinois Governor Blagojevich. And if you're asking me what my party affiliation is. I'm a trump credit and junk bond king. Mike Milkin we hear from Jim. Stewart the journalist who wrote the book on the nineteen eighties insider trading scandals. These particular Crohn's did create tremendous amount of collateral damage. The nation's top antitrust enforcer making delver hime on the controversial sprint t mobile merger. This is serious stuff. This affects the economy. It affects millions of jobs and the corona virus outbreak hitting small business one Amazon seller with factories in China. We really expect the disruption to Be hitting US hardest actually next month in March and April. Those stories plus some birthday celebrations. Where are the fireworks and balloons? They got nothing I asked for those. I'm CNBC producer. Katie creamer it's Wednesday. February nineteenth twenty twenty. Squawk pod begins right now standbys. Joe In three she one of my good morning and welcome the squawk box here and I live from stage in the star of stage and screen. Kelly is with us this morning. We are live from the Nasdaq market site in Times Square. You still on the exchange later. Are you still doing? I have done the exchange and we tried to keep the warm. I'm Joe Kernan. That's interesting we both done. The Exchange Kelly Evans is the star of the essential here today. Because Becky is off But just for today and then you got a long day not that not that long and join us for the next two hours. Liz Young probably has a long day. You have to go to work if there's going down. And you're directing all markets really and you're directing all market strategy. Advan y Mellon that takes time dow down. That's traveling salesperson. Okay that's all right too big client or something a few of them. Yeah who'll be there till Friday so you'll be there you can close the deal. Is that what you do you know how to do that? I guess I'm GonNa try stockbroker you know how you got to ask alternative choice questions. You'd like to buy this better for you and I like that. I can answer alternative of choice. Quite you do show. She doesn't get on a plane unless there's money to be new but you do everything you do should be closing though you should close more. You should be closing. I'm close did you see. What is it close? Gary you are. You couldn't stay away yesterday. Called in you had to go to news it was. It was actually did that work but I appeal for your vacation. Day since you essentially worked yesterday and you did not have the day off on the same emails that was you didn't get it. Thank you for your half day. I hadn't even thought about very good idea. Who's a very good idea to comfortable with this calling in? Yeah Yeah our colleagues at some other places as is it. One hundred and eighty. Well you gotTA stand at the end of city one hundred eighty days. If you're going to have. Could you eighteen the tax rate? Would you come clean or would you pretend that you're here? Would you let him pretend Bingo? I WanNa tell you about chairs of Blue Apron because they are swinging wildly after yesterday's close. Here's tapping here's what happened. Rather the company said it is exploring strategic options. That's usually euphemism for yet. Just putting itself on the Block. Basically the company coming up that announcement coming after its fourth quarter. Report showed ninety four million dollars in sales and a net loss of nearly twenty two million dollars. Customers fell from five hundred fifty seven thousand twenty eighteen to three hundred fifty one thousand by the end of two thousand. Nineteen the meal kit to deliver service. That it's considering merging with other companies and raising more money stock initially surged twelve percent. But now I can see that stock is now off eight percent. And that's what happens when you push up your sales through marketing. They were spending spending. But here's what blows me away. I get advertisements for new meal kit companies. I don't know about all the time ones. I've never even heard of anybody getting into this business. I don't know I've never used it and use it here and there but basically what I get a free week or something in and those big cards in the mail. There's a new one every week. I don't know who thinks that they're gonNA be able to make money if the biggest one in the industry could make your point Andrew unless they were constantly marketing from direct to consumer come. They're all realizing. Oh my gosh. If we don't plaster the entire world with ads constantly on every podcast any maybe we should get him on the spot. If some more if I do a meal kit it's going to be neutra systems can just. That's a different different kinds of things. The Diet Kim died Kim. But I'm saying if I ever were for men right. There's a different one for men. I think. Yes has more calories. I see guys get really thin on TV. I've watched you've seen that I have. They ever has lot. Does it work do you

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