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Blue Apron surges on the news of its healthy eating partnership with Weight Watchers

Key Points
  • Blue Apron spiked more than 17 percent Thursday on the news that it is partnering with WW, formerly Weight Watchers.
  • The stock is still less than a dollar per share and down over 77 percent for the year.
  • The partnership could breathe new life into the company, which faces competition from Amazon since it acquired Whole Foods.
Matt Salzberg, co-founder and chief executive officer of Blue Apron Holdings Inc., smiles during the company's initial public offering on the floor of the New York Stock Exchange, June 29, 2017.
Michael Nagle | Bloomberg | Getty Images

The meal-kit delivery company Blue Apron spiked 17.2 percent Thursday following the news that it is partnering with WW, formerly known as Weight Watchers. Even with the boost, the stock is still worth less than a dollar per share, ending the day at 92 cents, with a market cap of about $180 million. If the stock remains under $1 per share for 30 consecutive days, it could be delisted from the public market.

The stock is down 77.2 percent for the year after premiering at $10 per share as the first meal-kit delivery service of its kind on the public market in June 2017. That summer, Amazon announced it was acquiring Whole Foods in a major move into the food sector, which proved ominous for the nascent food delivery stock. The new deal with WW, as reported by The Wall Street Journal, offers Blue Apron the chance to build in more demand for its product while being able to spend less on marketing.

Through the partnership, Blue Apron will pay WW a fee for subscriptions it secures as a result of the arrangement, according to the Journal, which said the company declined to go into more detail about the deal. In a press release announcing the partnership, the companies said that six new meal recipes would be available through Blue Apron beginning Dec. 26 that are inspired by the WW Freestyle program and trackable in the WW app.

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