Stamps.com threw USPS under the bus and cratered 57% because it’s betting big on Amazon shipping
Stamps.com threw USPS under the bus, dissolving the companies’ longtime partnership, because it’s betting big on Amazon’s success in shipping and logistics.
The company revealed Thursday it revoked the exclusivity stipulation of its deal with USPS, ultimately spurring the complete termination of its partnership. And it championed Amazon’s foray into the shipping space, as reported in an SEC filing earlier this month.
“Amazon’s track record of disrupting an industry is well-established. So their threat should be taken very seriously by every player in the shipping industry,” CEO Ken McBride said on the company’s earnings call Thursday. “We are setting our corporate strategy assuming Amazon will be a big global player in shipping.”
It’s a big bet on Amazon, and dented Stamps.com stock. Shares plummeted more than 57 percent Friday to close at $83.65 — more than $100 off the stock’s Thursday closing price of $198.08 per share.