(C) Reuters. Should Blue Apron Holdings be in Your Portfolio?
The shares of Blue Apron Holdings (NYSE:APRN), a well-known company in the meal kit industry, have surged in price over the past month. But will the company’s decision to do away with its dual-class capital structure help the stock to continue advancing in the coming months as more restaurants reopen? Read on.Direct-to-consumer platform operator Blue Apron Holdings, Inc. (APRN) in New York City has made several advances toward realizing its vision of “better living through better food.” Its shares have soared 54.8% in price over the past month to close yesterday’s trading session at $6.02, due partly to its recent announcement that it will scrap its dual-class capital structure and raise $45 million in a fully backstopped equity rights offering. However, its co-founder and chairman, Matthew Salzberg, resigned from the board this month.
In addition, APRN’s shares have declined 21.3% over the past six months and 5.4% over the past nine months. And though the demand for its products and services surged amid the COVID-19 pandemic, it continues to struggle as several restaurants reopen.
According to a Grocery Dive report, the meal kit market’s growth rate will decline from roughly 70% in 2020 to 18.2% this year. Furthermore, APRN faces intense competition from other top players in the industry, such as Germany-based HelloFresh SE. So, APRN’s near-term prospects look uncertain.
Should Blue Apron Holdings be in Your Portfolio?
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