All These Instagram Ads Help Explain Why a Big Mattress Company Is Crashing Today
Shares of mattress maker Tempur Sealy International Inc. are experiencing a hard landing today with the stock down over 22 percent.
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.