Stamps.com Wipes Off 50% of Market Cap as Key USPS Deal Ends

A letter carrier pushes a package bin towards a delivery vehicle at the United States Postal Service (USPS) Joseph Curseen Jr. and Thomas Morris Jr. processing and distribution center in Washington, D.C.Photographer: Andrew Harrer/Bloomberg

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By Esha Dey

February 22, 2019 at 1:49 PM UTC

Updated on

February 22, 2019 at 3:23 PM UTC

This article is for subscribers only.

Stamps.com Inc. investors had a rude awakening as the company said it would end its exclusive partnership with the U.S. Postal Service, and highlighted increasing threat from Amazon.com Inc’s aggressive moves into shipping services.

Shares of Stamps dropped as much as 58 percent on Friday in New York, touching their lowest since August 2016 and wiping off $2 billion in market value. The company’s commentary about aggressive pricing tactics employed by bigger rivals -- as well as new challenges from Amazon -- also weighed on shares of United Parcel Service Inc. and FedEx Corp. UPS dropped as much as 3.5 percent, while FedEx fell 3.4 percent.