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Why Blue Apron Holding Inc Stock Was Climbing Today

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

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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.

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