One of the hottest new stocks last year was Purple Innovation, which makes mattresses. Yes, mattresses. It was at lifetime highs only weeks ago, but the breakdown has started.
![PRPLCLOSE](https://slopeofhope.com/wp-content/uploads/2021/03/PRPLCLOSE-640x605.png)
I would like to suggest this is a fundamental change in the stock’s direction, with that huge price gap being a shield against price ascendency.
![PRPLBIG](https://slopeofhope.com/wp-content/uploads/2021/03/PRPLBIG-640x874.png)
Of course, the P/E is almost 400, so I think there’s plenty of room for softness.
![](https://cached.imagescaler.hbpl.co.uk/resize/scaleWidth/815/cached.offlinehbpl.hbpl.co.uk/news/ORP/purple.prw.thumb.R10-22-2020.jpeg)