Will Competition Crush Mattress Stock Casper's Big Dreams?
Mattress maker Casper Sleep (NYSE: CSPR) may look like a nightmare to investors who bought shares during last year's initial public offering. Since then, the stock has dropped more than 68%. Like rivals, Casper had to deal with sluggish demand for mattresses during the pandemic. The global market slipped 0.1% in 2020, according to Fortune Business Insights. This is particularly difficult for a company that's in the early days of its growth story.
In recent times, supply chain problems and higher raw materials prices have added to Casper's woes. This wouldn't be as problematic if Casper were the only company around to ensure you get your dose of shut-eye. But rivals abound, from market leader Tempur Sealy International (NYSE: TPX) to fellow smaller competitor Purple Innovation (NASDAQ: PRPL). And that may be the biggest problem of all for Casper. Let's take a closer look.
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Source Fool.com
