Photographer: Connie Zhou for Bloomberg Businessweek

All These Instagram Ads Help Explain Why a Big Mattress Company Is Crashing Today

The competition is everywhere.

Shares of mattress maker Tempur Sealy International Inc. are experiencing a hard landing today with the stock down over 22 percent. 

Source: B

The company posted a weak outlook yesterday, and according to Bloomberg Intelligence analyst Seema Shah, one culprit is "online bed-in-a-box players like Casper [Sleep Inc.]," an internet-based mattress startup that promotes itself heavily on social media

It's not just Casper, however. Instagram is filled with ads for similar startups. 

Here's a handful spotted recently.


Such online competition may not be the only cause of Tempur Sealy's weaker outlook, and other analysts have pushed back on that theory.

"While 'bed-in-a-box' upstarts are gaining share at the margin, the abrupt nature of the business slowdown at Tempur and the correlation with promotion/marketing reductions most likely reveal issues not related to 'bed-in-a-box,'" said George Gianarikas at Fundstrat Global Advisors LLC.

That being said, mattress companies have been a popular one for shorts for awhile, and at least right now that is paying off. 

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