A timely partnership with Weight Watchers International is fattening up Blue Apron’s market cap days after its stock price tumbled below $1 a share.
Blue Apron’s stock surged 22% Friday, rising back above the $1 a share level for the first time since Dec. 18. That level not only carries a symbolic meaning for investors—below it, an issue is considered a penny stock, a designation that deters some shareholders—but the New York Stock Exchange will often delist stocks that trade below $1 a share for more than 30 days.
The rebound in Blue Apron’s stock began on Dec. 21, when the company announced it would partner with Weight Watchers, which now goes by the name WW Inc., to deliver meal kits based on WW Freestyle recipes. The new meal kits—which include recipes like Crispy Baked Chicken, Garlic Shrimp, and Sweet Potato Chile—became available on Dec. 26, one week before many people set New Year’s resolutions for healthier diets.
Blue Apron’s stock hit a record low of 65 cents a share around the time the partnership was announced. As publications like the Wall Street Journal and the Los Angeles Times began writing stories about the new menu this week, the stock continued to rise.
As of Friday’s close, Blue Apron shares had risen to $1.12 a share, or 73% above its low this month. The company remains 89% below its $10 a share offering price. This week’s rebound underscores the potential opportunities ahead for the company. Some analysts have said an acquisition by a major grocery chain like Walmart could also help improve access to Blue Apron’s meal kits.