Blue Apron Septuples on Catering Crunch
Blue Apron delivers meal-kits to homes, which is suddenly very popular. Its shares tripled yesterday, septupling (7X) for the week. However, the direction this explosive stock will take today is a coin toss. Feeling lucky?
As investors panic-sell stocks, consumers panic-buy groceries. Supermarket shelves are run baron and of course, restaurants are also closing, both to slow the spread of the virus, and to slow their cash burn.
Blue Apron “offers” do-it-yourself fine dining, salmon gourmets with hour-long preparation times for ten dollars per head. Too many consumers view Blue Apron as an overly expensive service to turn a profit, but that’s under normal market conditions.
Under these abnormal market conditions, however, people are coughing up, and that’s multiplied the company’s stock price. The Invstr community is 91% bullish on the name, having invested almost two-hundred billion dollars in it through fantasy finance. If you invested $10,000 in the company at 4:00 PM on Friday, you’d have $71,200 today!
Wearing long-term lenses, many investors see stocks on the S&P 500 as bargains. Wearing short-term lenses, however, many investors see them being worth, well, whatever they’re trading at now. Blue Apron has the equation inside out and upside down!
Before the crisis, it was being priced for a slow and painful bankruptcy. Now, there’s momentum in the name. The question is, how much are bulls willing to pay for a stock that, after the virus, will almost certainly go back to where it started? A tasty short, perhaps, but it’s all in the timing!
