Why Shares of Blue Apron Continued to Pop 17% Higher Thursday

What happened?

Shares of Blue Apron Holdings Inc. (NYSE: APRN), a meal delivery service that creates original recipes and delivers fresh ingredients directly to consumers' doorsteps, popped 17% higher as of 2:11 p.m. EST Thursday and are continuing to run higher following the company's announced partnership with Weight Watchers International (NASDAQ: WTW).

Continue Reading Below

So what

In case you missed the news over the holidays, WW and Blue Apron formed a partnership that will feature a weekly rotating collection of recipes with high-quality ingredients, as well as unique flavors developed in collaboration with WW nutrition and wellness experts. The customized WW menu will have six new meals rotating weekly throughout the year and will be an extension of Blue Apron's core meal menu.

"Our new WW Freestyle menu is designed to bring discovery and achievement to the home cooking experience, introducing consumers––including WW members and Blue Apron customers––to ingredients, techniques, and delicious meals that empower them to develop a wellness-inspired home cooking routine." said Brad Dickerson, CEO, Blue Apron, in a press release.

The question for investors remains: Will this development help turn the business around?

Now what

While details of the financial partnership were scarce, Blue Apron will pay WW fees for resulting subscriptions, and if the partnership helps bring in customers at a lower cost than Blue Apron's traditional marketing, it could prove to be a valuable partnership. In fact, Dickerson said this partnership with WW will help make Blue Apron profitable next year.

APRN data by YCharts

This is a positive development for investors, no doubt, but it's worth keeping in mind just how far the company has fallen -- as you can see above -- as it all but admitted its business model wasn't working. One thing is clear: There is much work to be done before Blue Apron is an enticing long-term investment.

10 stocks we like better than Blue Apron Holdings, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Blue Apron Holdings, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of November 14, 2018

Daniel Miller has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.