What happened Shares of mattress company Purple Innovation (NASDAQ: PRPL) got crushed on Thursday after the company reported financial results for 2020 and gave guidance for 2021. It appears it fell short of expectations in both areas, leading to the stock's fall. As of 11 a.m. EST, Purple stock was down 23%. So what For 2020, Purple grew net revenue to $648.5 million, a 51.4% year-over-year increase from 2019. The company also turned a profit of $10.9 million compared to a loss of $12.4 million the year before. Early in the pandemic, it appeared as though the company's sales would suffer, since many of its brick-and-mortar wholesale partners were closed. However, Purple's direct-to-consumer sales surged to more than make up the difference. Image source: Getty Images. Still, Purple's 2020 financial results fell just shy of Wall Street's expectations. Furthermore, it appears analysts had expected more from the company's guidance. Purple's management is guiding for 30% to 36% year-over-year revenue growth in 2021. It's also forecasting an increase to capital expenditures, which didn't sit well with investors either. All of this is likely contributing to the stock's fall today. Now what For perspective, even when accounting for today's declines, Purple stock has still more than doubled over the past year. A pullback after a run like that is completely normal. Moreover, I wonder if investors are being a little shortsighted with this consumer stock today. Expenses are rising for Purple, yes. But remember that this company differs from many mattress businesses -- it manufactures its own with proprietary equipment. In 2020, Purple struggled to make enough mattresses to keep up with demand, so it's spending in 2021 to increase its capacity. That seems smart to me. 10 stocks we like better than Purple Innovation IncWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Purple Innovation Inc wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source