APRN - Why the Feasting in Blue Apron Stock Will Soon Turn to Famine
One of the more surprising winners in the COVID-19 crisis has been Blue Apron (NYSE: APRN). With much of the country forced to stay home, the meal kit provider saw a sudden surge in orders. Investors subsequently bid the beleaguered stock higher amid this unexpected increase in demand.
However, earnings forecasts still do not point to profitability. Moreover, at some point, conditions will return to normal. While the increase in Blue Apron stock may offer some relief to investors, this recent rally looks more like a selling opportunity than a sustained comeback.
Early this year, Blue Apron stock was approaching penny-stock status for a second time. The 1-for-15 reverse stock split initiated last June did nothing to prevent Blue Apron from continuing its extended decline. The stock had fallen to as low as $2.01 per share in early March.