Blue Apron Holdings (NYSE:APRN) stock closed at $8.79 on Thursday, which brought its gains for the year to 33.6%. Now, Blue Apron is in the league of companies like Amazon (NASDAQ:AMZN) and Square (NYSE:SQ). Their stocks have registered a remarkable comeback from the pandemic sell-off. Amazon stock has risen 30% for the year, while Square stock has risen 25% for the year.
Here are three things that investors considering Blue Apron need to know.
Blue Apron stock trades at a 70% discount
Blue Apron stock has registered an impressive recovery from the broad pandemic sell-off in the past few months. At $8.79 per share, the stock has pulled up nearly 340% from its pandemic low of $2.01 reached in March.
However, the company still has decent upside potential. At this point, the stock trades about 50% below its highest Wall Street target price of $13. Bargain hunters will be glad to know that Blue Apron stock trades at a 70% discount to its 52-week high of $28.84.
COVID-19 boosts the demand for Blue Apron products
In February and March, investors went on a panic selling of company shares, which hit Blue Apron stock and many others. Amazon, Alphabet (NASDAQ:GOOGL), Twitter (NYSE:TWTR), PayPal, and Apple stocks also tumbled during the panic sell-off.
Alphabet and Twitter stocks fell because the virus outbreak caused businesses to slash their marketing budgets. The companies derive most of their revenues from selling digital ads. PayPal and Apple stocks fell after the companies issued revenue warnings. Notably, many of these stocks rebounded as the pandemic concerns eased.
For Blue Apron, the pandemic has actually boosted the demand for its meal kits. Due to lockdowns, more families have been cooking at home. Like Amazon, Blue Apron hired more workers to cope with the surging pandemic-drive demand for its products. Notably, investors flocked back to Blue Apron stock due to excitement about its business opportunities amid the pandemic.