Stock traders can't stop kicking Blue Apron while it's down.
ADVERTISEMENT
Traders can't stop betting against battered Blue Apron (APRN)
Short sellers are cranking up bets against Blue Apron's stock, even though it's already trading at roughly half of its IPO price.
The company's stock is already trading at roughly half of its $10 initial public offering price, but apparently that isn't low enough for the bearish speculators adding to wagers.
They've grown bets against Blue Apron to $69.3 million this month, up 12% since the end of September, according to data S3 Partners
Apparently those short sellers, who have already made a mark-to-market profit of $24.9 million since the company's June 29 IPO, are hoping to pad their bank accounts even more.
ADVERTISEMENT
And it's not like these wagers are cheap. Amid this recent surge in short interest, borrowing rates have spiked to double where they were just one week ago. In the end, their willingness to pay such a premium shows conviction.
If these traders are right about the direction of Blue Apron's stock, it will be just the latest hit in what's been an extremely tough road for the company since it started the process to go public.
Estimated to be valued at as much as $3 billion during its roadshow, Blue Apron's IPO quest was derailed suddenly when Amazon$13.7 billion
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng
ADVERTISEMENT