What happened

Shares of Blue Apron Holding Inc. (NYSE:APRN) were surging into the market close to end the week, recovering some of yesterday's losses after the company said that revenue continued to plunge in its latest quarterly report. Today, the stock seemed to benefit from a bullish analyst note, as well as the perception among some investors that it had been oversold yesterday.

As of 3:10 p.m. EDT, the stock was up 11.2%.

Two plates of a pork dish from Blue Apron

Image source: Blue Apron.

So what

In the wake of the meal-kit provider's sell-off, KeyBanc Capital Markets maintained support for the stock, rating it "hold." Analyst Edward Yruma said Blue Apron was making the necessary moves to revamp its business, arguing: "Blue Apron's business model is shifting with necessary urgency, and liquidity seems sufficient."

KeyBanc also said Blue Apron's new pilot program with Costco presents opportunity, as does further expansion in the retail channel.

Blue Apron shares had approached all-time lows yesterday following the second-quarter report, so investors may also be seizing a buying opportunity, as the company is building more efficiencies and working toward breakeven.

Now what

Blue Apron stock has been volatile since it debuted on the market last year, so it's not surprising to see shares rock back and forth following the earnings report. Investors don't know what to make of the meal-kit space, which is still evolving. And Blue Apron has generated plenty of its own turbulence, with a slowdown in growth due to operational errors at a new plant, and a change in leadership just months into its life as a public company.

KeyBanc makes some valid points, but competition appears to be mounting. Investors should expect the stock's volatility to continue until the business reaches a more stable point...if that ever happens.