Blue Apron Soars as It Sees Strong Demand in WW Partnership
(Bloomberg) -- Blue Apron Holdings spiked in its best day on record Tuesday, after the at-home meal-kit company said a recent partnership with WW had seen “higher-than-expected demand to date.”
The stock surged as much as 39 percent to $1.45 at 12:34 p.m., on track for its biggest one-day percentage gain in its history. The day’s trading was heavy, with more than 11 million shares exchanging hands, more than three times the stock’s daily average over the past three months. Shares of WW, formerly known as Weight Watchers, also gained as much as 3.5 percent.
While the stock continues to trade at low levels -- and it remains down about 60 percent over the past 12 months -- it has rebounded sharply in recent weeks. Shares have more than doubled from a record low of 66 cents in December.
In a press release announcing details for its upcoming fourth-quarter results, Blue Apron described a “favorable consumer response” to its partnership with WW, formerly known as Weight Watchers. It also said it would soon announce “a new offering specifically designed for online and brick-and-mortar retail” and reiterated its view that it would be profitable on an adjusted Ebitda basis in the first quarter of 2019.
In an interview with Bloomberg in December, Chief Executive Officer Bradley Dickerson said the company didn’t have a specific time frame for achieving profitability on a net-income basis.
Blue Apron is scheduled to report its fourth-quarter results on Jan. 31.
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