Stock Watch: Stamps.com Sees Tremendous Gain

Online postage company Stamps.com (Nasdaq: STMP) was one of the biggest winners on Wall Street last Friday. Shares of Stamps.com, which has developed technology that allows customers to use their computers to print postage, soared more than 50 percent on Friday, gaining 11-1/4 to 33-1/2 one day after the company announced a deal with online direct marketer MySoftware (Nasdaq: MYSW).

Shares of MySoftware also benefited from the deal, rising 3-1/2 to 19-1/2. Under the terms of the deal, MySoftware will integrate the Stamps.com online postage service into its direct marketing software products for small businesses. What makes Stamps.com’s stellar gain on Friday even more startling is that it was preceded by two other impressive rises. On Wednesday, Stamps.com climbed 3 to 17-1/2. On Thursday, the stock gained 4-1/4 to 22-1/4.

Stamps.com went public on June 25th at $11, and the stock closed its first day of trading at $13-11/16. Anybody who bought into Stamps.com on that first day has to be feeling pretty good now, but there is one hitch. Stamps.com’s technology has yet to be approved by the U.S. Postal Service. Then again, it’s clear that Wall Street views that as just a formality. Shares of Stamps.com were up 3-1/2 to 37-1/2 in early trading today.

Leave a Comment

Please sign in to post or reply to a comment. New users create a free account.

LinuxInsider Channels