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by ChuckMcM
2743 days ago
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Perhaps not spiraling but yes it isn't exactly a healthy sign either. It happened a lot during the dot com fallout :-) and even Sun did a reverse split 3:1 on its way out of existence. Literally though it is 'price neutral' and serves to meet investor needs (like to stay listed on an exchange) just as 'forward splits' are done, in part, to enable institutional investors to own fractions that are compatible with their portfolio goals. Always interesting to review the comments from when they went public (https://news.ycombinator.com/item?id=14464690) |
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"on its way out of existence" being the operative phrase there :).
Either way, Sun had been a public company for 20 years at that point - Blue Apron's been one for a year. Far more reason to believe that Sun could turn it around (and AIG and similar companies), which is why it works for them and not for Blue Apron.