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Blue Apron’s Biggest Bounce Ever Still Can’t Get Stock Above $1

Blue Apron’s Biggest Bounce Ever Still Can’t Get Stock Above $1

(Bloomberg) -- Blue Apron Holdings Inc. surged, and was on pace for its largest rally on record while extending its rebound to a third straight session, though shares of the at-home meal-kit company remain below $1 and on track for a sharp 2018 decline.

The stock popped as much as 25 percent -- a gain of 19 cents -- to trade as high as 98 cents Thursday. The move catapulted its three-session gains to more than 48 percent, a record gain over that period. Trading was heavy, with more than 2.9 million shares exchanging hands in the first 90 minutes hour of trading, nearly four times its 30-day average volume during that time of day.

There was no obvious catalyst behind the move, which came in contrast to broad-market losses.

Blue Apron’s Biggest Bounce Ever Still Can’t Get Stock Above $1

Despite the magnitude of recent gains, this week’s strength did little to erase what has been a brutal year for Blue Apron. The stock, one of the worst-performing initial public offerings of the decade, remains down more than 75 percent for 2018. It first fell under $1 last week, and it hit a record low of 65 cents on Dec. 21.

Last week, Chief Executive Officer Bradley Dickerson told Bloomberg that Blue Apron was focusing on its “best customers” in a move to stabilize its revenue trends by the end of next year. In its most recent quarter, it reported revenue that was down 28.5 percent from the prior year.

To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.net

To contact the editors responsible for this story: Catherine Larkin at clarkin4@bloomberg.net, Brad Olesen

©2018 Bloomberg L.P.