Blue Apron (APRN) plunged more than 10% Monday to a new all-time low of 64 cents a share after announcing a proposal for a reverse stock split. That's when a company reduces the share count to push the price higher -- usually to remain in compliance with the exchange they trade on. In this case, it's the New York Stock Exchange.
Blue Apron said it hopes a reverse split will "improve the marketability and liquidity" of the shares and "encourage interest and trading in the stock." That may be a stretch. The value of the company would remain the same. Reverse splits are often viewed as a sign of desperation.
Shares have plunged nearly 95% since their initial public offering in June 2017. The company has faced brutal competition and has continued to rack up losses -- despite partnerships with Walmart-owned (WMT) Jet.com and WW (WTW).
So unless shareholders approve the reverse stock split, a delisting from the NYSE may be the next ingredient on Blue Apron's menu.