AppHarvest (APPH 12.93%) brings modern technology to the agricultural industry, hoping to make farming more sustainable while improving access to nutritious foods. However, many shareholders have suffered serious losses since the company went public earlier this year, as the stock has fallen 85% from its high.
In this Backstage Pass video, which aired Oct. 27, 2021, Motley Fool contributor Brian Withers shares his thoughts on AppHarvest, highlighting why this company is still worth watching. Fool contributor Rachel Warren is also in the clip.
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Rachel Warren: My question is, is there a company that recently IPO-ed that you think is worth taking a second look at today?
Brian Withers: Yeah. I'll jump in. I've been watching AppHarvest throughout this year. It came public, I want to say the end of last year, early this year, and I first pitched it on the small-cap show back in February. And at that point, it had zero revenue and they had a market cap of about $3 billion dollars.
And then in June, I pitched it again. We've changed the small-cap show to the 10X show. The market cap was $1.7 billion. Well, it just started getting some revenue at that point. So it looked a little more attractive to me. But they had a tough first harvest and the stock has come way down, and I think the market cap now is $514 million.
Sorry for folks who've bought that stock and ridden this one way down. I'm still intrigued by the company, and if they are able to do -- what they proposed to do is not just create a number of farms that capture the rainwater, and are very efficient, and are grown locally, shipped locally, all of that good stuff. They want to create a farming ecosystem, a technology farming ecosystem that other companies can use. This could be a really big idea. Right now, I don't know if it's at maximum, or if at it's low point. It could certainly go down from here if they have continued challenges. But AppHarvest, APPH is the ticker, is still an interesting one for me.