Please ensure Javascript is enabled for purposes of website accessibility

Why Blue Apron Holding Inc Stock Was Climbing Today

By Jeremy Bowman – Updated Apr 18, 2018 at 5:02PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Shares of the meal-kit provider seemed to bounce on a Twitter rumor about an acquisition.

What happened

Shares of Blue Apron Holding (APRN -5.00%) were moving higher today two days after the stock popped on apparent short squeeze. Today, rumors that the company could be acquired by a supermarket chain seemed to be driving the stock higher. Shares of the meal-kit provider closed up 4% after gaining as much as 8.5% earlier in the day.

A Blue Apron box with several cooking ingredients

Image source: Blue Apron.

So what 

On Twitter, hedge fund manager Will Meade said he heard reports that Blue Apron was in talks to get acquired.

Meade did not provide any details on the rumors, nor did any major media organization confirm them, however, talk about an acquisition being the best endgame for Blue Apron is nothing new. Rival Plated was acquired by Albertson's late last year, which is now introducing the meal-kit brand in its supermarkets, and Hello Fresh recently acquired Green Chef as consolidation in the industry continues. Blue Apron itself has also flipped around its business model, saying it would distribute through grocery stores. 

Blue Apron management has never indicated they are interested in a sale or are seeking something like "strategic options."

Now what 

Considering Blue Apron's modest bounce, the market doesn't seem to be buying the rumor as the stock would have surged past $3 if investors really believed an acquisition was afoot. Still, it's one more reason to believe that a buyout could be in Blue Apron's future. That potential should ensure the stock's continuing volatility as the company's struggles to turnaround its business, and things change quickly in the meal-kit industry

Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Blue Apron Stock Quote
Blue Apron
APRN
$2.85 (-5.00%) $0.15

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
342%
 
S&P 500 Returns
110%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.