on Thursday, rising as high as $15.85 a share, it sold off on Friday. By the close of trading, its stock was at $11.05 a share, putting its shares under their IPO price and giving the company a market capitalization of just $450 million.
"It's a healthy sign that people are skeptical," said Robert Hendershott, an associate finance professor at Santa Clara University's Leavey School of Business.Part of what likely hurt Casper's IPO is that it's losing money, the expert said. The company expects to post a loss of between $91 million and $96 million for 2019, it said in its public-offering paperwork.
Over the last year, public investors have become increasingly skeptical of more mature startups that are losing substantial amounts of money. WeWork, which was burning through billions of dollars, wasn't even able to go public. Uber, Lyft, and Slack all saw their stock fall well below their initial prices. Casper is only the latest to see its losses under the microscope.
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