Stocks to buy

Blue Apron (NYSE:APRN) stock has some characteristics of a potential meme stock. At the same time, Blue Apron just reported quarterly results that aren’t perfect but still demonstrate improvement in key areas.

Chances are good that you’ve heard about the wild price moves in Bed Bath & Beyond (NASDAQ:BBBY) stock. Now, eager traders are on the lookout for the next Bed Bath & Beyond. Could Blue Apron be a prime target for a Reddit-fueled short squeeze?

Anything’s possible on Wall Street, but there’s more to Blue Apron than the company’s meme-worthiness. Indeed, a quick glance at Blue Apron’s financial stats may tempt you to consider a small serving of shares.

APRN Blue Apron $6.10

What’s Happening with APRN Stock?

Like BBBY stock, APRN stock recently got a share-price bump as traders sought out stocks with meme-worthy characteristics. Adding fuel to the fire, financial market influencer Will Meade reported on Aug. 18 that Blue Apron’s short interest stood at an eye-popping 55%.

Along with the sizable short interest of the stock, Blue Apron checks some other boxes that short squeeze traders look for. The company’s shares are relatively low-priced, for example.

Also, Blue Apron is somewhat under the radar, as the company isn’t a giant, blue-chip business.

Hey, if a college student apparently made $110 million trading BBBY stock, maybe APRN stock could be the next rainmaker. Let’s not get ahead of ourselves, though. For the time being, $8 and $10 are reasonably ambitious price targets.

Besides, for sensible investors, a company’s fundamentals are, well, fundamental. So, let’s check the fiscal ingredients of Blue Apron and see if there’s a business worth investing in.

Blue Apron Continues to Grow Its Revenue

There have been a couple of highly noteworthy events pertaining to Blue Apron this summer. First, the company introduced a new line of Ready to Cook meals. That’s a savvy move as many of today’s customers expect speed and convenience in their meals.

Another notable event was when Blue Apron released its second-quarter 2022 financial results. These results weren’t perfect, as Blue Apron sustained a quarterly net earnings loss of 68 cents per diluted share.

On the other hand, that result demonstrated improvement over the year-earlier quarter’s loss of 98 cents per share. Also, Blue Apron posted a third consecutive quarter of revenue growth. In Q2 2022, the company’s revenue rose slightly year over year to $124.2 million.

Another metric worth watching is average order value. Blue Apron’s second-quarter 2022 average order value increased 7.1% year over year to $67.14, so that’s an additional positive data point.

What You Can Do Now

APRN stock has some of the qualities that Reddit traders crave. Yet, even if you’re not into meme stocks, you can still invest in Blue Apron as the company’s revenue growth should inspire confidence.

Going forward, investors should check to see if Blue Apron is able to close the profitability gap. In the meantime, though, Blue Apron is demonstrating enough financial improvement to make it worth considering now.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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