APRN stock continues to move higher for the second straight session after rising over 35% in yesterday’s trading session.
Stock Rebound on Big News
Plant-based meat manufacturing company Beyond Meat (NASDAQ:BYND) has proven to be one of the most interesting companies in recent times, and when the company had its initial public offering this year, it enjoyed an astonishing rally. As a matter of fact, Beyond Meat proved to be the best IPO of the year in terms of gains from listing price and beat such big names like Uber (NYSE:UBER) comfortably. Now, it seems that an association with Beyond Meat has the capacity of sending the shares of a company soaring and that is what happened with meal kits company Blue Apron Holdings Inc (NYSE:APRN).
The meal kits by mail company zoomed by an astonishing 35% on July 16 after it announced that plant-based burgers will now be an option in its meal kits, supplied by Beyond Meat.
APRN stock is up another 8% in Wednesday’s session and now trading at $11.20.
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Analysts are Not Bullish
Blue Apron Holdings’ association with the hottest stock in 2019 resulted in investors piling on to APRN stock and inducing a hugely impressive rally. However, there are many analysts who are not as impressed with this particular rally. For instance, if Blue Apron had simply announced that it was now going to offer customers the option to order plant-based burgers, then maybe it would not have been such a big thing for investors. However, the company made the announcement about Beyond Meat, and that was what instigated the rally.
If one takes a closer look at APRN stock, then they would find that prior to Tuesday’s announcement, the stock had been largely ignored by investors. Moreover, Blue Apron Holdings had also performed a 1 for 15 reverse split in order to prop up the price of the stock so that it did not get delisted from the New York Stock Exchange.
Until Monday, APRN stock had declined by as much as 95% from its listing price, and the number of users has also declined. Back in March, it reported that it had 550,000 active accounts, but a year earlier that figure was 30% higher.
Featured image: DepositPhotos © bhofack2
