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Stamps.com Craters After 2019 Profit Outlook Is Slashed

Operations At A U.S. Postal Service Processing And Distribution Center
Photographer: Andrew Harrer/Bloomberg
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Stamps.com Inc. plunged as much as 56% on Thursday, dropping to its lowest in more than four years, after the company slashed its profit outlook for the full year, fueling investor concerns about its ability to protect margins in the absence of a key partnership with the U.S. Postal Service.

The company, which makes software that lets customers print postage for U.S. mail, had set its earnings forecast for the year in February, when it reported fourth-quarter results and also said it had ended the USPS partnership. While it expected the discontinuation to result in some “short term pain,” the latest outlook suggested that pain may be more severe than anticipated.