Why Is Casper Sleep Stock Trading Lower in 2021?
It's been a rough year for Casper Sleep (NYSE: CSPR) investors. The direct-to-consumer mattress seller has seen its shares tumble 30% in 2021 through Thursday's close. The stock is down 64% since settling for an initial public offering priced at $12 a share last year.
Casper Sleep stumbled from the start of its publicly traded tenure. Underwriters were hoping to price the offering as high as $19 when it hit the market in February of last year. It had to settle for $12, and the shares have been trading in the single digits for most of its public life.
The irony here is that Casper Sleep's IPO came just weeks before the pandemic essentially forced us back into our homes. The shelter-in-place phase of the COVID-19 crisis gave us months to assess our homes or move to cozier digs, and suddenly spending on home furnishings bubbled up to the top of the priority list. We saw shares of online furniture retailers and makers of bean bag chairs and adjustable air-chambered mattresses skyrocket in 2020. Casper Sleep didn't follow suit. It could've bounced back in 2021, but that also failed to materialize. What happened? Let's go over the bad breaks that Casper Sleep faced this year -- and what it has to do to claw its way back to give its shareholders a good night's sleep again.
Source Fool.com
