Blue Apron Holdings Inc. (APRN) surged 19.39% to 93 cents per share in early Thursday trading. It was up about 16% late afternoon.
The CEO of the New York-based meal-kit delivery company said its recently announced partnership with WW Inc., (WTW) formerly known as Weight Watchers International Inc., will help make the struggling company profitable next year.
In an interview Wednesday with the Wall Street Journal, Blue Apron CEO Brad Dickerson said a partnership with WW Inc. will help his company stabilize its customer count without having to spend tens of millions of dollars on advertising and promotions that have hurt its bottom line.
Last week, WW and Blue Apron Holdings Inc. announced a partnership that will offer a list of rotating recipes delivered to the homes of WW members. The recipes are based on the WW Freestyle program.
Blue Apron will pay WW fees for resulting subscriptions. The two companies wouldn't discuss the financial arrangement in more detail, but Dickerson told the Journal that he believes WW will help make Blue Apron profitable next year.
Blue Apron's stock debuted at $10 a share in July 2017. Last week, Blue Apron declined below $1 for the first time. The stock opened Thursday at 78 cents. During the roadshow for Blue Apron's IPO in June 2017, Amazon (AMZN) announced it was acquiring Whole Foods Market.
The company operates an e-commerce marketplace that delivers original recipes and fresh ingredients for making home cooking accessible. The company offers its services through order selections on its website or mobile application.
Shares of WW were off 2.55% to $41.27 in recent trading.