Enter a hilarious momentum trade in a low-cap stockĭon’t pop the champagne.So people are now, putatively, cooking more.Blue Apron makes meal kits that folks can make at home.Everyone is looking for something to buy that will go up as everything else goes down.Indeed, Blue Apron is worth just $211 million today including its day’s gains, according to Google Finance.īlue Apron was worth about $1.9 billion when it went public, for reference.Īnyway, why is the company skyrocketing? TechCrunch thinks it figured it out. So, no, the company is not worth 60% more than its IPO price of $10 per share. 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.īear in mind that we are looking at the company after its reverse split. So, the firm decides to give its investors the same value of the company, but in new, smaller chunks. In most stock splits, a company’s share price gets too high for comfort. In fact, Blue Apron’s share price decline got so bad that in mid-2019 Blue Apron had to execute a 1-for-15 reverse split. It opened up a hair, but closed the day a mere penny above its IPO price. The meal kit delivery company finally priced at $10 per share.
That pricing change limited the company’s worth, and reduced the capital it raised in its debut. Today as the global stock market continues to fall, shares in the former venture darling are soaring, up more than 140% in midday trading.īefore its IPO, the company had to reduce its price range from $15 to $17 per share to $10 to $11 per share. Back in 2017, a formerly hot, formerly profitable company called Blue Apron went public.
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