Scott Galloway: Casper's filing for IPO bad idea, it will hurt stock - Business Insider

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NYU Professor Scott Galloway on why Casper's filing for IPO isn't enough to save the sinking startup, and how far he predicts their stock will drop in 2020 (via ScottGalloway)

Galloway predicts that going public will cause Casper's stock to shed 30% or more within a year.

In 1953, Chuck Williams bought the Ralph Morse Hardware Store in Sonoma, California. He gradually converted the merchandise from hardware to French cookware, which was hard to find at the time. Over the last 50 years, Williams-Sonoma built billions in shareholder value zigging versus zagging. The key isn't selection, but a lack of selection. Williams-Sonoma doesn't have the most toasters, it has the Dualit New Generation 4-Slice Toaster — the right toaster.

Voice, self-expressive benefit, proprietary product, innovative distribution, and leadership should all add up to margin. Specifically operating margin.Casper has filed to go public. Let's look at how they stack up against traditional players and new kids on the block in direct to consumer and specialty retail.Casper is a nice brand in a growing market — the sleep economy. Sure, call it that.

I had breakfast with a senior exec from Goldman last week. As you'd imagine, he's uber impressive and a smart guy. Goldman is doing some very interesting things and deserves credit for taking chances. But in my view they don't have a sense for their brand positioning. In sum, Goldman Sachs's brand identity is: "We're f---ing Goldman Sachs."

 

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