Mattress maker Purple Innovation’s (PRPL) shares have dipped in price since the company reported weak third-quarter earnings results. So, can they rebound on the company’s ability to leverage of its broad portfolio of products and services? Let’s find out.Comfort solutions company Purple Innovation Inc. (NASDAQ:) plans to expand its production capabilities in its Georgia manufacturing facility and open additional showrooms. Lehi, Utah-based Purple Innovation Inc. expects that it will have more than 30 showroom locations by the end of 2021. The stock gained momentum due to positive sentiment from hedge funds. BofA analyst Chris Nagle doubled downgraded it to buy, and reduced its price target from $36 to $16. This was due to concerns about weak wholesale and online trends.

PRPL’s third quarter results were disappointing. It warned of rising input costs and a greater shift to wholesale in channel mix. PRPL also plans on increasing its marketing budget, which could adversely affect its fourth quarter results.

The stock has lost 33.3% in price over the past month and 50.1% over the past three months to close yesterday’s trading session at $13.34. It is trading at 67.5% lower than its January 25th, 2021 all-time high price of $41.08, when it reached that mark on January 25, 2021. So, PRPL’s near-term prospects look bleak.

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