5 Reasons to Avoid the Casper IPO

Online mattress seller Casper filed earlier this month for an initial public offering, making it the first closely-watched market debut of 2020.

During a time when the IPO market has been troubled since the WeWork debacle as investors prioritize profits over growth, Casper hopes to buck the recent trend. Touting the growth of the sleep economy and its unique brand in the space, Casper has grown to a valuation in the private markets of $1.1 billion. The company generated $456 million in revenue over the last four quarters, and at just six years old, Casper has already had a significant impact on the mattress and sleep industry, sparking rapid growth in direct-to-consumer mattress sales.

Despite the company's well-known brand and impressive growth so far, there are a number of reasons investors may be better off sitting out Casper's IPO.

Source Fool.com