Shares of online postage company Stamps.com (Nasdaq: STMP) climbed 4-15/16 to 32-7/16 on Friday after the company was talked up by analyst Steve Harmon. Harmon, who is the senior investment analyst for internet.com (Nasdaq: INTM), said he liked Stamps.com’s market potential and that Stamps.com’s industry “globally is a multi-hundred billion dollar market.”
After the markets closed on Friday, Raging Bull Cyberstock Investor columnist Matt Ragas painted a different picture. Ragas took a close look at the numbers. “The total potential revenue pie in the U.S. for Stamps.com and its competitors would range roughly between $2.58 billion and $3.89 billion this year,” Ragas noted. “That’s a far cry from the $58 billion U.S. postage market number frequently tossed around in discussion of this space.”
Ragas also pointed out that Stamps.com, which is still waiting for its technology to be approved by the U.S. Postal Service, has said that its international expansion plans are preliminary. Over the weekend, investors on messages boards were busy discussing the comments made by both analysts. Look for this debate to continue for a while.
Shares of Stamps.com climbed 1-9/16 to 34 in early trading today.