1.26 -0.02 (-1.56%)
After hours: 7:59PM EST
|Bid||0.00 x 1000|
|Ask||0.00 x 900|
|Day's Range||1.2000 - 1.4300|
|52 Week Range||0.6500 - 4.2000|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Jan 31, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||1.46|
Meal-kit provider Blue Apron Holdings Inc.‘s shares rocketed 38% on Tuesday, after the company said it is confident it can achieve a version of profitability in the first quarter and for the year that’s dependent on an adjusted, non-standard way of accounting that ignores chronic losses and declining revenue.
CORAL GABLES, FL / ACCESSWIRE / January 17, 2019 / Now more than ever, society is gravitating towards a culture of convenience as a result of the technological advances made over the last decade or so. Globally, e-commerce which includes mobile e-commerce, is a rapidly growing industry that is not showing signs of slowing down any time soon. Analysts forecast that online purchasing could increase to nearly $4.5 trillion by 2021.
Shares of meal-kit maker Blue Apron Inc. fell more than 13% Thursday, after the company was named in a list of 10 potential bankruptcies in 2019. Investing and financial news site Investor Place acknowledged that the company is not one often named as a potential bankrupt, but after going public at $10 and falling to under $1 in less than 18 months, "there's clearly an issue". The company posted heavy losses in its most recent quarter and said it would lay off 4% of its workforce. Earlier this week, it said it expected to be profitable in the first quarter and for fiscal 2019--but only on the basis of an adjusted non-standard metric, and not because of actual profit, as MarketWatch reported. "There's too much competition and too low of margins to imagine APRN surviving on its own over the long term," said Investor Place. Shares have fallen 59% in the last 12 months, while the S&P 500 has fallen 6%.
It doesn't matter if times are tough or if they're great, there are still going to be companies that go belly up. A perfect example? Look at 2008 vs. 2018. Just 10 years apart and look at how much has changed. Yet bankruptcy stocks are still popping up all over the map, and there's not much investors can do about it: bankruptcy happens. But that doesn't mean those investors have to get caught up in the beatings. Conversely, it also doesn't mean they need to short these stocks. In fact, when it comes to bankruptcy stocks, my main instinct is to avoid them at all costs. That's because even though the long-term story is eroding and the vultures are circling, we routinely see these names pop 20%, 30%, 40% and sometimes even more over a few-day stretch. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Buy as the Dollar Weakens While not shorting companies that are circling the drain goes against common sense to some extent, I just don't care for the added volatility and elevated risk profiles that these names come with. That said, here are some bankruptcy stocks to keep an eye on. ### Bankruptcy Stocks to Watch: Sears (SHLDQ) Source: Shutterstock Sears Holdings (OTCMKTS:SHLDQ) is the obvious bankruptcy stock for 2019, and it's fitting that this retailer is starting off the list. After years of profit declines, cash flow bleeding and declining sales, Sears is finally going through the bankruptcy process. CEO Eddie Lampert's hedge fund is working toward a deal with Sears to buy up the company in bankruptcy court. The pending deal, which was recently bumped up from $4.4 billion to $5 billion, would be ironic, given that Lampert was the one at the helm when Sears went under in the first place. Perhaps if Lampert hadn't pared off the company's best brands and sold off its best real estate, the retailer would have been on better footing. The errors were obvious when they were occurring, not just in hindsight, but it's unclear whether that would have saved the company or not. So which retailers benefit from a Sears bankruptcy? While in the short-term the retailer's bankruptcy may hurt these companies due to liquidation sales, companies like Home Depot (NYSE:HD), Lowe's (NYSE:LOW), Best Buy (NYSE:BBY) and Monro (NASDAQ:MNRO) should all benefit, among others. ### J.C. Penney (JCP) Source: Shutterstock J.C. Penney (NYSE:JCP) reminds me a lot of Sears, with just a little bit more runway left. Its precarious situation looks more like a "when" not "if" scenario when it comes to the dreaded B-word. Shares are up big over the last week, climbing almost 30% since last Thursday. But don't get too excited. This name has gone from $1.13 per share to just over $1.30. That's not doing much to inspire confidence. With a 52-week low of 92 cents to and a high of $4.75, JCP stock is closer to the wrong side of that one-year range. The company's recent update on its holiday sales and reaffirmation of some of its guidance is uplifting news. But let's be real. Sales have been in decline for three straight years as its footprint is shrinking and over the past five years, JCP has had one year with positive net income. That came in 2017 and JCP turned in just $1 million in profit. JCP isn't completely circling the drain, but with over $4 billion in long-term debt and less than $200 million in the bank, I'm not super optimistic on its future. ### PG&E (PCG) Source: Riccardo Annandale Via Unsplash A lot of people want to see PG&E (NYSE:PCG) go under. Multiple wildfires in Northern California has not only created plenty of negative press for PG&E, but also a lot of liabilities. The share price had gone from $70 in November 2017 to about $17.50 fecently, a 75% haircut -- and that's before news of its pending bankruptcy filing dropped shares further, to around $7. But more alarming has been the performance of its bonds. S&P cut the company's bonds to BBB-, the lowest investment grade rating available. Moody's went a step further, slashing the company's bonds down junk status. The move will force PG&E to post cash collateral and will make borrowing more expensive. While PG&E does have cash coming in, it's got just $430 million in the bank. It's got over $18 billion in long-term debt -- and even worse for investors, this utility doesn't even have a dividend. There are much better choices on the table for investors. ### Blue Apron (APRN) Source: Shutterstock Blue Apron (NYSE:APRN) isn't a name that comes up much when it comes to bankruptcy situations. That's likely because it's a relatively new player in the stock market and its debt situation -- with just under $300 million in total debt -- isn't that bad. But when a stock goes public at $10 and it's under $1 less than 18 months later, there's clearly an issue. While WeightWatchers (NYSE:WTW) threw the company a bone, it's clear that Blue Apron's business model was not a good one. It cost too much to attract new customers and the cash flow bleed was lethal. Lately though, cash flows are trending higher and APRN might be able to avoid a stock-exchange delisting. But a pennies-on-the-dollar acquisition seems more likely to be on the horizon. There's too much competition and too low of margins to imagine APRN surviving on its own over the long term. ### GameStop (GME) Source: Shutterstock Without some change to Apron's business and/or stock price, some type of action seems imminent in 2019. For GameStop (NYSE:GME), that may not be the same case -- at least this year. At the very least though, its dividend could be on the block. The stock currently yields over 9.7%, while free cash flow and operating cash flow continue to dwindle. However, GME's cash flow is not negative, like its net income is. Over the last three years, GME's best year came in fiscal 2016 when it earned $28 million. This year? It lost almost half a billion dollars. To say the situation is worsening is an understatement, as gamers continue to turn to digital downloads and online sales. GME needs to make a move -- reducing its footprint, bringing an entertainment component to its business and only maintaining its profitable locations. Or consider a buyout. Without one, its business is in trouble. ### Barnes & Noble (BKS) Source: Mike Kalasnik via Flickr (modified) It's too bad to see Barnes & Noble (NYSE:BKS) on the decline, because I loved these stores when I was younger. While bookstores could somehow stay around, the e-book/Kindle revolution really ruined business for these guys. And let's be honest, Amazon (NASDAQ:AMZN) also didn't do any favors for retail, in particular BKS. As of the most recent quarter, the company has $11.2 million in cash and $63.7 million in accounts receivable. While it doesn't have any short-term debt, it does have over $621 million in accounts payable. Further, long-term debt sits at $278 million. Despite this seemingly lopsided situation, the company still pays out a dividend. Its yield is near 9.9%, a red flag to be sure. And even though the company turned in one of its best holiday comps in recent memory, management warned on profit, saying it may fall up to 10% year-over-year. It's been years since since BKS turned in an annual income statement without red ink on its net income line. This one's bankruptcy seems inevitable at some point down the road. ### The Container Store (TCS) Source: Shutterstock I'm not trying to pick on retail intentionally, but just too many of these companies are hanging by a thread and need too many things to work out perfectly for them to stick around. The Container Store (NYSE:TCS) is one of them. Obviously after the holiday quarter, TCS will come into some cash as it geared up for the holidays like everyone else. But as of the last quarter, TCS had just $7.2 million in cash with more than $7 million in short-term debt. Worse, it has more than $282 million in long-term debt. That said, the company is on the right side of profitability and actually has positive free cash flow. I just do not like its levered balance sheet, something management needs to correct in 2019. Otherwise, it will need to make some less-than-appealing moves and that may weigh on its stock price even more. The stock is down more than 40% in the last three months to less than than $6 a share. Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Growth Stocks With the Future Written All Over Them * 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One * 10 Companies That Could Post Decelerating Profits Compare Brokers The post 7 Bankruptcy Stocks to Watch in 2019 appeared first on InvestorPlace.
Why Tech Stocks Surged on January 15(Continued from Prior Part)Blue Apron has struggled since going public in 2017Meal kit delivery company Blue Apron (APRN) has had an extremely difficult time since it went public in mid-2017. The stock is down 85%
For a long time, essentially everyone on Wall Street wrote off Blue Apron (NASDAQ:APRN) stock as a dead duck with zero chance of turning around. APRN stock went public at $10 per share in June 2017. That was about as high as it ever got. Over the next 18 months, it turned into what one of the worst IPOs ever. By Christmas 2018, this was a 65-cent stock. * 12 2018 Winners That Will Be Big Ol' Losers in 2019 Then the turnaround started. Macroeconomic sentiment improved. That helped things. But Blue Apron also announced a big meal-kit partnership with Weight Watchers (NYSE:WTW), which management said would stabilize the customer base without the company having to spend big on marketing. Then, the company updated investors on fourth-quarter trends -- and that was a positive read. Management said that a new fulfillment center continues to drive operational efficiencies, while the Weight Watchers deal has seen higher-than-expected demand. It also reiterated that the company would be adjusted EBITDA profitable in Q1 and fiscal 2019. InvestorPlace - Stock Market News, Stock Advice & Trading Tips All those positive developments have created a surge in APRN stock. After bottoming at 65 cents before Christmas, APRN stock has nearly tripled in less than a month. Shares currently trade hands at around $1.50. Is this turnaround legit? Could APRN stock be in the early stages of a huge turnaround that propels shares back to $10? I don't think so. There are reasons to be optimistic, and the recent near tripling in APRN stock does feel somewhat justified. But the long term fundamentals remain uncertain, and the pathway to sustainable profitability remains bleak. So, while APRN stock could be in the early stages of a huge turnaround, the odds of this stock getting back to $10 are very, very low. ### Reason for Optimism, but Still Too Many Question Marks There are certainly reasons to be optimistic about the current turnaround in APRN stock. At its core, the decline in APRN stock over the past 18 months has been driven by three headwinds: customer churn, big expenses and lack of a sustainable moat. To some extent, the recent partnership with Weight Watchers addresses all three of those headwinds. On the customer churn front, a partnership with Weight Watchers taps into the huge WW customer base and, thereby, gives Blue Apron a pipeline to stabilize customers. Meanwhile, that customer stabilization will come without additional marketing since its through the Weight Watchers pipeline, so the customer base has the potential to stabilize without operating expenses going up. Also, this partnership gives Blue Apron some semblance of a moat, as it establishes the company as a "diet meal kit maker," which is a unique and differentiated value prop in the largely uniform meal kit space. Thus, management coming forth and saying that the Weight Watchers deal is progressing with high demand, and concurrently doubling down on profitability projections for 2019, is pretty important. The implication is that this company could be gradually turning into a small, profitable shell of its former self. But there's sill too many question marks to say that this transformation is actually what is happening. Top-line trends at Blue Apron hardly signal a turnaround in sight. Revenue declines have only deteriorated year-to-date -- from down 20% in Q1, to down 25% in Q2, to down 28% in Q3. Same is true for customer churn trends. As the company has stopped spending an arm and a leg on marketing, the customer base has consistently dropped by 20% or more each quarter this year. Plus, competition is only getting stiffer and, if the WW partnership doesn't pan out, the company could continue to lose customers at a rapid pace. Overall, while there's reason for optimism regarding APRN stock, there's also reason to question the legitimacy of recent strength in the stock. Until those questions have tangible answers, it's probably best to avoid APRN stock. ### Profitability Lacks Visibility The biggest problem with APRN stock is that the company's pathway to profitability lacks visibility. Gross margins have been steadily improving all year long. Still, they are largely below 35%. Best case scenario, the company continues to drive operational efficiencies through the Linden fulfillment center, and gross margins rise to 40%. That still isn't high enough to drive profitability. Year to date, the company's opex rate is above 50%. Although the company is cutting back on marketing expenses, that is adversely impacting customer growth -- and revenues are dropping too. Thus, there hasn't been any room for opex leverage, nor will there be so long as the customer base continues to retreat. In order for Blue Apron to reach true profitability, a lot of things have to happen. First, the customer base has to stabilize and/or grow. Second, that has to lead to revenue stabilization and/or growth. Third, gross margins have to move towards 40% or higher. Fourth, the company has to keep gutting its marketing expenses, potentially to levels that aren't even possible given current revenues. In other words, Blue Apron is still a lot of speculative twists and turns away from being truly profitable. Until that pathway attains visibility, APRN stock will likely remain depressed. ### Bottom Line on APRN Stock Recent strength in APRN stock is impressive and should not be ignored. Blue Apron's fundamentals are improving, and those improvements do breathe life into what was a dying company. * 7 Oversold Small-Cap Stocks With Massive Profit Growth But Blue Apron still has significant operational risks which threaten the long-term sustainability of the company, while the pathway to profitability remains unclear. All together, that means APRN stock won't head back towards $10 any time soon. As of this writing, Luke Lango was long WTW. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * Top 10 Global Stock Ideas for 2019 From RBC Capital * 10 A-Rated Stocks the Smart Money Is Piling Into * 5 Best Bank ETFs for This Week's Earnings Avalanche Compare Brokers The post Is Blue Apron Stock in the Beginning Stages of a Huge Turnaround? appeared first on InvestorPlace.
CORAL GABLES, FL / ACCESSWIRE / January 16, 2019 / Delivery tech companies have dramatically changed the makeup of the food industry as we've all come to know it, with the advent of food delivery apps meant to bring ease to customers looking to eat delicious foods without having to step inside a restaurant. To put it simply, the basic paradigm of what defines a restaurant or food-serving location is being completely redefined as experts and professionals in the field work to develop innovative approaches to developing applications and digitized solutions to improve the quality of food delivery for consumers. ParcelPal Technology Inc (PTNYF) (PKG), Blue Apron Holdings Inc (APRN), Groupon Inc (GRPN), and Yelp Inc (YELP) are 4 delivery tech stock companies developing new ways for consumers to enjoy their meals.
Tuesday was a very big day for a handful of lesser-known and/or distressed names, all of which suffered through 2018. It's the kind of action that makes the markets interesting in a New Year. First, Blue Apron was up 45% on a company announcement that it expects to be profitable on an "adjusted EBITDA" basis for the first quarter and full year.
Blue Apron Rose 45.2% Due to Profitability NewsBlue Apron stock roseBlue Apron Holdings (APRN) stock rose 45.2% in the last trading session and closed at $1.51. On January 15, the company issued a press release. Management stated that it “plans
Tuesday ended better than it started, with the S&P 500 advancing 1.07% for the day. The quick recovery erases most of the doubts raised by Monday's modest stall. Netflix (NASDAQ:NFLX) did more than its fair share of the heavy lifting, gaining 6.5% after announcing it would be imposing price hikes. Investors chose to see the glass as half-full rather than half-empty, assuming subscribers will pay the new, higher rates rather than choose to cancel their service. Blue Apron Holdings (NYSE:APRN) investors enjoyed the bigger gain, however, as shares soared 45% after the company projected a swing to profit in 2019. While most stocks were up, there were some notable losers. PG&E (NYSE:PCG) fell another 17.5% as the market continued to digest the ramifications of its bankruptcy filing. The latest chapter in the saga? The company failed to make its most recent payment due on its debt. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Between the December rout, the January bounce and now the advent of earnings season against a backdrop of a government shutdown, finding reliable trading setups is anything but easy. The stock charts of Gap (NYSE:GPS), American International Group (NYSE:AIG) and Walt Disney (NYSE:DIS), however, look like they're able to follow through on the hints they've dropped. ### Walt Disney (DIS) If it had happened in another place under any other circumstances, it might not even be worth noting. * 8 Dividend Stocks With Growth on the Horizon But, where and how Walt Disney shares lost even just a little bit of ground yesterday sets the stage for more downside … as long as the broad market tide doesn't have other plans. The bears just have one more task to take care of. Click to Enlarge• Tuesday's bar is in some ways an outside day, where the high and the low engulf Monday's range in its entirety. But, it was also an inside day in the sense that yesterday's open and close were both within Monday's open/close range. Both point to a change of heart. • Underscoring the red flag of Tuesday's action is the fact that the bulls made five consecutive attempts to hurdle the gray 100-day moving average lines, but couldn't. The pullback unfurled on above-average volume too. • Though another pullback today would put an exclamation point on the pivot, there's still a potential technical floor at $109 -- where the 20-day and 200-day moving average lines have converged -- that could be support. ### Gap (GPS) A little over a week ago, Gap was featured as a stock trapped in a downtrend, unable to break out of the bearish rut even when the market's tide was bullish. That has not changed in the meantime. In fact, the factors forcing it lower than have since solidified, pulling the stock lower. Even the floor of the bearish range that's taken shape since early last year, however, isn't terribly close (and it's falling fast). Click to Enlarge • The ceilings in question are a combination of the purple 50-day moving average line, the blue 20-day moving average line and the straight-line ceiling plotted as a dashed line that has guided GPS shares lower for weeks now. • Monday's retest of the 20-day average set up Tuesday's loss … making GPS one of only a few stocks that couldn't get traction yesterday. • The next-best hope is the lower edge of the falling trading range, currently at $23.50 but falling fast. ### American International Group (AIG) Most financial stocks are recovering from a brutal September, and American International Group is no exception to that trend. AIG is now doing something most of the others aren't, however, which suggests it may fare better from here than its peers will. Click to Enlarge • Though still below average, the buying volume has not only been bullish, it has been growing. More buyers are coming to the table the higher it goes. • Last week's cross of the purple 50-day moving average is also a key buy signal. Though most stocks have done well, AIG has logged eight consecutive days of gains, further suggesting the bulls are on a mission. • Keep an eye on the $44.60 level, which was a ceiling in November and December, and could become resistance again. Above that level, the next plausible resistance is above $52. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies That Could Post Decelerating Profits * 10 A-Rated Stocks the Smart Money Is Piling Into * Mizuho: 7 Long-Term Value Stocks to Buy Now Compare Brokers The post 3 Big Stock Charts for Wednesday: Walt Disney, Gap and American International Group appeared first on InvestorPlace.
Why Blue Apron Soared Over 44% TodayBlue Apron HoldingsToday, the New York–based meal kit delivery service Blue Apron Holdings (APRN) surged over 44% after it made a highly optimistic announcement. Let’s take a closer look.The optimismToday,
rose more than 44% Tuesday heading into the close after the company affirmed guidance for its most recent fiscal quarter and shared positive news about its recently announced deal with Weight Watchers International Inc. , now known as WW. Blue Apron shares closed 44.23% higher at $1.50 in trading on the New York Stock Exchange.
Meal-kit provider Blue Apron Holdings Inc. said Tuesday it is confident it can achieve profitability on an adjusted EBITDA basis in the first quarter and full year 2019. EBITDA -- or earnings before interest, taxes, depreciation and amortization--is often used as a measure of cash flow. The company said it defines adjusted EBITDA as net earnings (loss) before interest income (expense), net, other operating expense, other income (expense), net, benefit (provision) for income taxes and depreciation and amortization, adjusted to eliminate share-based compensation expense. It said it was offering a non-GAAP number because it is unable to reconcile guidance to GAAP, or Generally Accepted Accounting Principles at this time. It made the comment ahead of a presentation on its fourth quarter and fiscal 2018 earnings. The presentation will include an update on its renewed focus on engaging consumers with its direct-to-consumer platform as well as an update on the response to its partnership with WW, the renamed Weight Watchers . Shares surged 7.7% premarket, but are down 69.5% in the last 12 months, while the S&P 500 has fallen 7.3%.
In the latest Blue Apron news (NYSE:APRN), the company's stock has been surging on Tuesday following an update regarding its projected guidance for its fiscal 2019. The meal-kit service provider announced that it believes that it will be profitable in the fiscal year. The news was a welcome boon to APRN stock, which had fallen below a price of $1 per share recently, selling at 65 cents per share at one point-the stock may have been in trouble of being delisted from the New York Stock Exchange if it remained under $1 a share for 30 days. However, Blue Apron shares climbed back to above $1 per share, trading for about $1.40 per share at the moment, as the company said that when it reports its earnings on Jan. 31, it plans on unveiling figures that are on track with its goal of being profitable during the first quarter of its fiscal 2019 and during the full year. InvestorPlace - Stock Market News, Stock Advice & Trading Tips The meal-kit service provider's recent troubles that caused its share price to declined were countered by the company with several healthy partnerships, including one with Weight Watchers, which lead to a "favorable consumer response" from the partnership, Blue Apron added. However, it remains to be seen if this surge is to last for the company as more meal-kit services keep popping up, diluting the market for Blue Apron. APRN stock is surging a whopping 34.6% on Tuesday following the company's encouraging guidance for its fiscal 2019. ### More From InvestorPlace * Morgan Stanley: 7 Risky Stocks to Sell Now * 10 Stocks You Can Set and Forget (Even In This Market) * The 7 Best Stocks in the Entrepreneur Index Compare Brokers The post Blue Apron News: APRN Stock Soars on Upbeat Guidance appeared first on InvestorPlace.
CORAL GABLES, FL / ACCESSWIRE / January 15,2019 / The food industry, as we've all come to know it, has recently changed with the advent of food delivery apps meant to bring ease to customers looking to eat delicious foods without having to step inside a restaurant. With the recent increase in capital and sheeramount businesses entering the delivery tech stock market, the nascent sector has seen unprecedented growth in the space. To put it simply, the basic paradigm of what defines a restaurant or food-serving location is being completely redefined as experts and professionals in the field work to develop innovative approaches to developing applications and digitized solutions to improve the quality of food delivery for consumers.
Shares of WW, formerly known as Weight Watchers, also gained as much as 3.5 percent. In a press release announcing details for its upcoming fourth-quarter results, Blue Apron described a “favorable consumer response” to its partnership with WW, formerly known as Weight Watchers.
Shares of WW, formerly known as Weight Watchers, also gained as much as 3.5 percent. In a press release announcing details for its upcoming fourth-quarter results, Blue Apron described a “favorable consumer response” to its partnership with WW, formerly known as Weight Watchers.
Meal kit company Blue Apron expects to achieve profitability this quarter, the company said ahead of its Q4 2018 and fiscal year 2018 financial results. Blue Apron will release its earnings January 31, but said today that, "based on its current view of the business, Blue Apron plans to reaffirm confidence in achieving profitability" on an adjusted EBITDA basis in Q1 2019, as well as for the entire fiscal year. Blue Apron defines EBITDA as its net earnings before interest, taxes, depreciation and amortization.
Blue Apron (APRN) is back in the news—and, for now, out of penny stock territory. Blue Apron is scheduled to report fourth-quarter and 2018 financial results on Thursday morning. Blue Apron’s journey from buzzy startup to post-IPO meltdown led it to the land of penny stocks in mid-December, a milestone Barron’s noted while characterizing it as a cautionary tale for this year’s new public offerings.
Shares of Blue Apron skyrocketed after the company said it would likely be profitable in 2019. The company's stock has been in danger of being delisted from the New York Stock Exchange. To help sales, the meal kit service has partnered with Walmart's Jet.com and WW, formerly known as Weight Watchers.
Concerns about economic slowdown in China, Brexit related problems and expectations from fourth quarter 2018 earnings results are near-term factors that can generate market fluctuations.