- Lot of initial buzz about Casper IPO but sales growth, though strong, decelerating

- After $423 million in marketing spend, net losses continue and no end in sight

- Need for continued high investment in marketing and SGA; long product cycle

The initial public offering market has had a rough time of it since the WeWork IPO debacle last year. The stink from that spectacularly failed IPO has stuck to the new issues market in general, but particularly where an IPO tries to market itself as a tech type company when perhaps it isn’t.

That brings me to the Casper Sleep (CSPR) IPO last week. Unlike WeWork’s IPO, Casper’s offering went off, but not without a hitch as it had to reduce its price to $12 per share from a previous range of $17-$19, after prospective investors pushed back.  They did for good fundamental reasons, as I hope to show below. These remain relevant even as the stock is down 20% to about $10.

Consequently, some investors might be tempted to buy now. However, if you bother to look through its 285-page IPO filing, you might not. Its market capitalization is less than $500 million, though at one time it was thought it could go for over $1 billion.

The video in this report is only accessible to members
 Let’s start with the many buzzwords—a WeWork specialty—that Casper sprink...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)