Why Stamps.com stock has rebounded 10% today

What happened

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Actions of Stamps.com (NASDAQ: STMP) jumped 10% on Friday. The rebound has only partially recovered a 55.8% of diving Thursday, when the company released decent results for the first quarter of 2019 – at least compared to forecasts provided in February put an end to its exclusive relationship with the US Postal Service (USPS) – but was followed by a sharp reduction in its outlook for the year. "data-reactid =" 12 "> Actions of Stamps.com (NASDAQ: STMP) jumped 10% on Friday. The rebound only partially offset a steep drop of 55.8% on Thursday when the company posted good results in the first quarter of 2019 – at least compared to forecasts provided in February after the break-up of its exclusive relationship with US Postal Service (USPS) – with sharp reductions in its outlook for the year.

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SOURCE OF IMAGE: GETTY IMAGES.

So what

Make no mistake, nothing has changed the situation of the company's postage and online shipping solutions in the last 24 hours. There have been no new press releases, analyst updates, SEC filings or other positive information that could typically be credited for such pop. More than anything, this seems to be a consequence of losing more than half of the stock in one trading session for the second time in as many quarters.

Now what

As a reminder, yesterday, Stamps.com has imputed its lamentable new guidelines to potential contract amendments with certain strategic partners that are still part of the USPS reseller program. It turns out that these partners renegotiate their service contracts with the postal service, which, according to Stamps.com, could have a negative impact on its respective revenue sharing contracts, as of the second half of this year.

If that impact is not as severe as feared Stamps.com, opportunistic investors who took stock after yesterday's plunge could certainly be satisfied with their decision. But it would also be hard to blame shareholders who do not want to stay after suffering the two sharp post-profit declines this year.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Steve Symington has no position in any of the actions mentioned. The Motley Fool has stock and recommends Stamps.com. The Motley Fool has a disclosure policy."data-reactid =" 38 ">Steve Symington has no position in any of the mentioned actions. The Motley Fool has stock and recommends Stamps.com. Motley Fool has a disclosure policy.