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    Blue Apron (APRN) Stock Rockets Amid Short Squeeze

    By Wasim Omar

    Dec 23,2022

    7:32 AM UTC

    Stock for Blue Apon Holdings Inc. (APRN) is a stock that faces heavy shorting, with over 52% of its shares outstanding in the short float. Despite this, APRN has been taking on an epic climb throughout the week rising by as high as 40%, in the last five days alone. With the rising trade volume, it is evident that bulls are charging against shorters. Fundamentally, Blue Apron is a strong company that is seeing significant bottom-line growth over the years and is soon to break even. Based on this trend, it is apparent that the price growth is sustainable, and APRN may potentially be seriously undervalued and held down artificially by shorters.

    Blue Apron (APRN) Attempting a Restructure

    The price rise seen within APRN stock ties into the broader context of the company resetting its approach, as well as changing its overall business structure. Last week the management of the company stated its plans to significantly streamline operations, and bring down costs, including a 10% trimming of the total workforce. Although the severance-related costs to this move amount to over $1.2 million, Blue Apron expects a saving increase of over $50 million in 2023. Similarly, earlier this week, it had received $1 million of its private placement obligation worth $57 million.

    Conclusion

    APRN stock is currently in the process of a rapid upward takeoff, much to the dismay of all its shorters. For a stock as fundamentally sound and promising as Blue Apron, its price seeing artificial depression for that long is an unsustainable position. The company’s restructuring and cost-cutting act as a further catalyst for a gradual bullish rise.

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