Wall Street bets against the meal kit businessWall Street bets against the meal kit business

This post is part of the On the Margin blog.

A month ago, we wondered whether Blue Apron would be a major restaurant competitor or a flash in the pan.

So far, Wall Street appears to be betting on the latter.

Blue Apron’s stock has fallen more than 25 percent since its initial public offering late last month — an offering that priced well below the range it had originally hoped for when it filed earlier this year. Indeed, the stock is priced at half of the bottom end of its originally planned pricing range of $15 to $17 per share.

Some of the problem with Blue Apron’s IPO can be blamed on Amazon, which bought Whole Foods and essentially changed the landscape of the entire retail food market in one fell swoop. The prospect of a competitor lik...