Blue Apron shares bounce back to over $1
Lucas Jackson | Reuters
Blue Apron CEO Matthew B. Salzberg, center, celebrates with co-founders Ilia Papas, second from right, and Matt Wadiak during the company’s IPO on the New York Stock Exchange in New York, June 29, 2017.
Blue Apron bounced back to over a dollar per share Friday as the stock skyrocketed for a second day in a row following the news of its new partnership with Weight Watchers, now known as WW. Shooting up 70 percent for the week, Blue Apron shares are now worth $1.12 each as of Friday’s close, bringing its market cap to about $216 million — less than two times its quarterly revenue based on its most recent earnings report in November.
Blue Apron had been at risk of getting delisted from the public market since it fell under $1 earlier this month. A stock can be removed if it remains below $1 per share for 30 consecutive days. Friday’s upswing buys the meal kit delivery service more time to gain the trust of its public shareholders.
The past week has been a bright spot in an otherwise dismal year for the company, which premiered on the public market in June 2017. Blue Apron stock is down more than 72 percent for the year.
Through its partnership with WW, Blue Apron will get access to a group of dedicated subscribers. Blue Apron will pay a fee to WW for subscriptions it obtains as a result of the partnership, The Wall Street Journal reported.
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