Stamps.com crushed earnings last night and the stock gapped higher by 16% this morning, until giving it all back and more.
The stock was trading north of $100 today and is now down. Who the fuck is buying all of these online stamps? I don’t get the allure.
The bigger story here, of course, is the share reversal. I’ve always loathed to be involved with situations like this. Make no mistake, STMP might very well bounce a little here, as dejected shareholders get replaced with savage predetorial vulture type traders. Nonetheless, this is a stark reminder of how cruel the market can be, especially when you’re playing at the earnings roulette table.
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What the hell is a stamp?
Who the fuck is buying all of these online stamps? I don’t get the allure.
It isn’t e-stamps. It is more of an e-postage-meter. Instead of a separate Pitney Bowes machine with the red-ink postage printer, you use a computer app and your own printer.
Using your own printer saves on costs and allows you to print the address and postage on an envelope at the same time. The app gives the usual enhancements — flexibility, tracking and control of postage printing, pre-sets, etc.
Users subscribe to the service, so the reversal may have been an initial reaction to good earnings followed by a reaction to poor numbers on subscriber growth or retention.
Shit will bounce back tomorrow! I’m sure plenty of people blew their accounts up today….oye!