Why Blue Apron Stock Soared 100% Amid a Market-Destroying Pandemic
By Sissi Cao, Observer
If there’s ever a silver lining in this life-destroying, economy-crippling coronavirus pandemic, it would be the resurgence of dying meal kit startup Blue Apron, at least for now.
As major U.S. cities, including New York, Los Angeles and Seattle, rush to order restaurants to suspend dine-in service and limit orders to take-outs and delivery only this week, investors—mostly wounded from two weeks of brutal market rout—are flocking to buy shares of Blue Apron and other meal prep and food delivery companies.
Shares of Blue Apron jumped over 100 percent Monday afternoon after seven counties in the Bay Area announced shelter-in-place orders. Its stock jumped another 70 percent on Tuesday amid several extremely volatile trading hours as these orders took effect.
“With so many households practicing social distancing and remaining at home, getting fresh ingredients for at-home preparation holds appeal,” said Jennifer Bartashus, a senior analyst with Bloomberg Intelligence.
Before the massive rebound, Blue Apron shares had plummeted 98 percent since its initial public offering in June 2017. The company is currently valued at $18.6 million, still a far cry from its peak private-market valuation of $2 billion just a few years...