INSUBCONTINENT EXCLUSIVE:
Back in 2017, a formerly hot, formerly profitable company called Blue Apron went public
Today as the global stock market continues to fall, shares in the former venture darling are soaring, up more than 140% in midday
trading.Before its IPO, the company had to reduce its price range from $15 to $17 per share to $10 to $11 per share
The meal kit delivery company finally priced at $10 per share
It opened up a hair, but closed the day a mere penny above its IPO price.Then things got worse
So, the firm decides to give its investors the same value of the company, but in new, smaller chunks
So a concern trading for $1,000 per share that wanted to split would normally give, say, its investors 10 new shares worth $100 apiece in
exchange for their single $1,000 share.A reverse split is the other way
in the same manner as they did Grubhub, companies that came, made an impact, went public and then slowly dissolved.Until now
Suddenly Blue Apron is the hottest stock in the world, skyrocketing as other companies shed value
Today in regular trading, American indices fell so far that they triggered protective circuit breakers
So, no, the company is not worth 60% more than its IPO price of $10 per share
billion when it went public, for reference.Anyway, why is the company skyrocketing? A Technology News Room thinks it figured it out
Walk with us:Everyone is looking for something to buy that will go up as everything else goes downBlue Apron makes meal kits that folks can
make at homeOver the weekend, many United States cities began shutting downThat meant less dine-in serviceSo people are now, putatively,
Blue Apron is still worth about what it raised as a private company; its market cap is only about 40% of the money it raised while private
in addition to its IPO haul
Here are some facts from its Q4 and full-year 2019 report:1.62 million Q4 orders, down from both Q3 2019 (1.73 million) and Q4 2018 (2.42
million)$94.3 million in Q4 revenue, down 33% compared to the year-ago periodA net loss of $21.9 millionNot great! Perhaps Blue Apron will
explode, beating guidance and earning its newly resurrected share price
