As many expected, the technology of online postage company Stamps.com (Nasdaq: STMP) was approved by the U.S. Postal Service on Monday. What was surprising, however, was the way Stamps.com’s stock traded after the news. Considering the fact that the stock had run up more than 30 percent on Friday in anticipation of the news, a pull back seemed almost inevitable.
Stamps.com actually rose as high as 43-1/4 before closing at 31-11/16, an overall decline of 4-5/16 for the day. It looks like more than a few investors got burned on this one, and it remains to be seen whether Stamps.com’s stock will approach 43-1/4 again anytime soon. Even at 31-11/16 a share, Stamps.com is worth more than 1.1 billion, which seems like a pretty favorable valuation.