Shares of meal-kit service Blue Apron soared 28 percent Tuesday after the company said that it believes it will be profitable in 2019.
The company’s stock, which has a market value of $230 million, had recently been trading below $1. At one point it fell as low as 65 cents. If the stock had remained below the dollar benchmark it would have been in danger of being delisted by the New York Stock Exchange. Since its initial public offering in June 2017, the stock has dropped by 88 percent. Tuesday’s bump boosted its stock price as high as $1.35.
When the e-commerce company announces its earnings on Jan. 31, it said that it plans to reaffirm its confidence in being profitable during both the first quarter of 2019 and the full fiscal year.
To help lagging sales, Blue Apron has announced a number of partnerships. Last month, it launched a partnership with WW, formerly known as Weight Watchers, to bring healthy meals to consumers. The company said Tuesday that it has seen a “favorable consumer response” as a result of that partnership. The company also partnered with Jet.com, which is owned by Walmart, to deliver its meals across New York City.
The company also teased that it would share more innovations on its earnings call, including a new offering for brick-and-mortar stores.
Blue Apron has struggled to keep its subscriber numbers up in a crowded field of meal kit options. Users of meal kits are notorious for using deals to join a service and then quickly dropping out. This has led to high marketing costs as the companies try to build loyalty.
To rein in its costs, Blue Apron has recently laid off staff.