Why AppHarvest Was Down 22.4% in September
Shares of AppHarvest (NASDAQ: APPH) were down 22.4% in September, according to data from S&P Global Market Intelligence. The agricultural technology (AgTech) start-up that went public earlier this year has performed dismally for investors and is now down 83% since February. Management reducing sales guidance for 2021 and the broad sell-off in IPO stocks were the two key reasons for the stock's fall last month.
AppHarvest is an early-stage company focused on sustainable indoor farming. When it went public through a special purpose acquisition company (SPAC) in February, it was just finishing its first indoor farm for tomatoes in Morehead, Kentucky. Management believes because of climate change, the growing number of consumers wanting locally grown produce, and the benefits of indoor farming, its tomatoes (and eventually other produce) will be more sustainable and provide a better value proposition to consumers than existing grocery store selection.
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Source Fool.com
