Blue Apron surges on the news of its healthy eating partnership
Michael Nagle | Bloomberg | Getty Images
Matt Salzberg, co-founder and chief executive officer of Blue Apron Holdings Inc., smiles during the company’s initial public offering on the floor of the New York Stock Exchange, June 29, 2017.
The meal-kit delivery company Blue Apron spiked as much as 24 percent Thursday following the news that it is partnering with WW, formerly known as Weight Watchers. Even with the boost, the stock is still worth less than a dollar per share, with a market cap of about $180 million. If the stock remains under $1 per share for 30 consecutive days, it could be delisted from the public market.
The stock is down about 77 percent for the year after premiering at $10 per share as the first meal-kit delivery service of its kind on the public market in June 2017. That summer, Amazon announced it was acquiring Whole Foods in a major move into the food sector, which proved ominous for the nascent food delivery stock. The new deal with WW, as reported by the Wall Street Journal, offers Blue Apron the chance to build in more demand for its product while being able to spend less marketing.
Through the partnership, Blue Apron will pay WW a fee for subscriptions it secures as a result of the arrangement, according to the Journal, which said the company declined to go into more detail about the deal. Blue Apron and WW did not immediately respond to requests for comment.
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