Recent news updates regarding the coronavirus from China has Blue Apron (NYSE:APRN) stock heading higher on Tuesday.
An increasing number of bars and restaurants in U.S. cities are closing due to the global pandemic and the desire for more social distancing. In fact, nine governors currently have enacted some sort of restriction in their respective state. While most restaurants still have permission to offer delivery or carryout, the moves will still cut into the number of people patronizing the restaurants for the time being.
Furthermore, growing numbers of consumers are being asked to work from home due to fears about coronavirus possible spreading through their workplaces and beyond. In turn, these people will likely not be going outdoors unless it’s completely necessary.
Enter Blue Apron. This company was one of the pioneers in the meal kit delivery business. It ships the materials you need to create home-cooked meals, directly to your home. The danger of coronavirus contamination is limited mostly to the time the delivery person is actually at your door.
That said, investors are betting on Blue Apron to have substantial gains in this situation. Shares of APRN stock are skyrocketing on Tuesday, clawing their way from under $4 at the close yesterday to well over $5 in midday trading on Tuesday.
And the stock price could go even higher if more states and/or cities shut the doors on more restaurants, and more people are stuck home with the time to make their food in the evening.
So far today, APRN stock is up almost 40%.
Nick Clarkson is a Web Editor at InvestorPlace. As of this writing, he did not hold a position in any of the aforementioned securities.