Blue Apron's Shares Surge After Kroger Acquires Home Chef
NEW YORK, NY - Kroger’s recent $200 million acquisition may have an unexpected beneficiary; after news that the Cincinnati-based retail giant acquired meal-kit delivery company Home Chef, competitor Blue Apron’s stock jumped more than five percent.
According to Business Insider, the surge may have been caused by speculation that Blue Apron would follow Home Chef’s lead. The financial news source mused that investors may be buying Blue Apron on the hunch that Kroger’s acquisition could prompt another retailer to attempt a buyout of Blue Apron—a potential bargain considering that the meal kit maker’s shares have lost nearly 70 percent of their value since the company went public in June of last year.
Business Insider also cited a seven percent spike in Blue Apron’s stock price this February after an analyst from Gabelli & Company told CNBC that Walmart may be a “logical buyer” for the ailing fresh food provider.
Will speculation prove accurate and investors reap rewards from Blue Apron’s strategic position in the fast-growing meal kit market? News of the company’s latest stock leap comes just weeks after Blue Apron appointed a new Chief to oversee its finances. AndNowUKnow will continue to report on this and other important retail news.