Investing.com - Internet-based shipping company Stamps.com (NASDAQ:STMP) plummeted 56% in midday trading on Friday after it ended its exclusive relationship with the United States Postal Service.
With customers expecting same-day and two-day shipping regularly now, the company said that it needs to work with other competitors and it's ending its USPS arrangement of more than 20 years.
“Our customers can no longer survive on just the USPS, and we don’t see that as a viable option for the next five years,” Chief Executive Kenneth McBride said on the company's earnings conference call Thursday. “So, basically that was our premise, is like, no matter what, this company can no longer be exclusive given the trends in the shipping market.”
Stamps.com reported earnings per share of $3.73 on revenue of $170.2 million, which was well above forecasts compiled by Investing.com. But sales are expected to decline in 2019 due to the end of its revenue-sharing agreement with the post office.
Elsewhere in the sector, FedEx (NYSE:FDX) slumped 1.6% while United Parcel Service (NYSE:UPS) declined 2%. Amazon.com (NASDAQ:AMZN) was up 0.6%. The retail giant has disrupted the shipping sector due to its two-day shipping promise.