Seemingly left for dead, meal-kit provider Blue Apron (APRN) emerged from the grave on Tuesday, with APRN stock jumping over 25% higher from the prior day’s close. Undergirding the unexpected spike was a critical deal that eases funding pressure. Moving forward, Blue Apron will shift to an asset-light model which may help its bid to profitability.
Nevertheless, before investors jump on APRN stock, they should be aware of the intense headwinds facing the underlying enterprise. On the technical front, APRN is still down 23% on a year-to-date basis despite Tuesday’s remarkable rally. Over the past 365 days, it lost more than 83% of equity value. However, the fundamentals present the biggest challenges.
