What Is Going on With Blue Apron (APRN) Stock Today?

  • Blue Apron (APRN) shares are surging higher on the day, with APRN stock higher by more than 26%.
  • The move comes even as other short-squeeze stocks like AMC Entertainment (AMC) and Bed Bath & Beyond (BBBY) move lower.
  • It’s not clear if the stock can maintain momentum, but a break of its $4.75 support level could create a problem for long-term holders.
APRN Stock - What Is Going on With Blue Apron (APRN) Stock Today?

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It’s a sea of red on Monday. After the stock market fell on Friday, the selling is bleeding over to Monday as all of the major U.S. indices push lower. Notably though, shares of Blue Apron (NYSE:APRN) are roaring higher, with APRN stock up more than 26%.

The feat is even more impressive given the fact “risk-on” meme stocks are being punished. Bed Bath & Beyond (NASDAQ:BBBY) shares are down 60% over the last three days. AMC Entertainment (NYSE:AMC) is down about 40% on the day. So why is APRN stock rallying so hard?

Just last week, Blue Apron stock was caught up in the short-squeeze bonanza as well. From its low on Friday, Aug. 12 to its high on Wednesday Aug. 17, shares nearly doubled. While it did cool off — falling about 30% — buyers are back in control on Monday. The question is, can they keep up the momentum?

Is APRN Stock the Only Short-Squeeze Left?

Just a few days ago, it looked like Bed Bath & Beyond was the new short-squeeze stock leader. It was flying higher, amassing a more than five-fold gain in just a couple of weeks. While GameStop (NYSE:GME), AMC, APRN stock and others were climbing too, Bed Bath & Beyond was the clear leader. Then, it fell off a cliff, followed shortly by a dive in AMC stock.

One could argue GameStop is holding up, but it’s currently down 6% on Monday and is working on its fourth straight daily decline. Further, it’s down 24% from last week’s high. So that really could leave just Blue Apron in the short term.

Last week, Blue Apron had an investor meeting. Further, Will Meade, a well-known former hedge fund manager, recently endorsed the stock.

However, with the rest of its meme-stock peers tipping over and the overall market struggling to find a bid, it may be hard for APRN stock to maintain its momentum. Over the last three days — including Monday — Blue Apron shares printed a low between $4.75 and $4.76. This is probably a good area for short-term investors to keep an eye on.

If shares break below this level and can’t bounce, it could open up more downside pressure. On the upside, clearing last week’s high of $6.85 could create more of an upside squeeze.

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

Article printed from InvestorPlace Media, https://investorplace.com/2022/08/what-is-going-on-with-blue-apron-aprn-stock-today/.

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