CafePress (NASDAQ:PRSS) operates a website that allows users to design their own products, like mugs, caps and even iPhone covers. It’s a cool service, and the company shipped 7.8 million items in 2011.
The problem? Well, CafePress was betting on substantial demand for presidential election items. But as seen in its fiscal Q2, there was not much interest in Romney and Obama mugs. The company’s outlook for Q3 was for revenues of $42.5 million to $45 million. The Street, on the other hand, was forecasting $50 million. On the news, the stock price plunged over 40%.