Blue Apron ( NYSE: APRN ), they reported today that they are going to introduce recipes featuring products from Beyond Meat ( NASDAQ: BYND ), which is the meatless meat for vegetarians and vegans and people that don’t eat meat, which by the way seems like a pretty good idea these days, particularly if you are into not mistreating and slaughtering animals, blah, blah, blah; all that kind of jazz. Whatever floats your boat. The bottom line is, a lot of people are saying they don’t want to eat meat anymore, I’m kind of one of them.
But here’s the deal: I am not going to buy a Blue Apron ( NYSE: APRN ) meal because they are giving me a chickpea burger instead of a beef burger, it’s just not going to happen. This is a stock that they split; they did a reverse split 1-for-15 back here. The last time I have seen a reverse split like this was back shortly after the Internet bubble when you had these stocks that had been trading for $9000.00 trading down to $.52, I am exaggerating but only barely. The company wanted to make the stock more creditable so they would do like a 500-for-1 stock reverse split, something like that.
The bottom line is this: This is a dog stock. It might be a great company, I don’t know, I don’t think so. I think a Betty Crocker cookbook and a shopping cart is probably all the barrier to entry there really is but still, the stock has found a bottom. I would say this, with this thing up 35 percent in a day because they are adding recipes that they don’t send you a ½ pound of hamburger but instead send you a patty of Beyond Meat ( NASDAQ: BYND ), come on man, that should not be stock-moving news.
Now, Beyond Meat ( NASDAQ: BYND ), sure, fine, maybe they are going to get additional revenues. But for Blue Apron ( NYSE: APRN ), this is madness, it is just absolute stupidity. I could be wrong and that’s okay, I am willing to live with that. But I am just telling you when a stock moves this much in one day and the reason is “bullspit” there is no reason for this stock to be up as much as it is. But I have got to say this too, keep in mind when I am saying there is no reason for the stock to be up as much as it is I am not saying that it is not going to move higher. I am recognizing the technicals, this was a big move today, this is a big move today. Okay, great if you were long yesterday.
But as a guy who has studied literally countless charts over the last 23-years or so I can tell you that a stock that closes up 35 percent but was at one time during that day up 80 percent, a 35 percent close is a resting stop for a stock that is going south. So if you bought into this thing that’s great, good for you I hope you bought at lower prices. My bet is, though, the stock is going to fall back down here. I think this is being used for a lot of people as an opportunity to sell the stock. And I think about 29.5 million shares were sold today into somebody.