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Why Shares of Inc. Declined Today

By Daniel Sparks – May 8, 2017 at 5:13PM

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A cheaper offering from's competitor has some investors worried.

What happened

Shares of Internet-based mailing and shipping solutions company (STMP) fell as much as 10.4% on Monday after Pitney Bowes (PBI 0.47%) announced a new competing offering for its cloud-based SendPro mailing and shipping solution. Shares of closed the trading day down 7.9%.

So what

Pitney Bowes asserted in a press release Monday morning that its new $5 SendPro delivers three times the benefits of's solutions for one-third of the cost.

Chalkboard sketch of a stock price falling

Image source: Getty Images.

In the release, Pitney Bowes explained the new offering:

Now for only $5 a month, businesses can receive full access to SendPro, including the ability to print stamps and shipping labels for the U.S. Postal Service (USPS) and other major carriers, and flexible postage payment options. The offer also includes a free 90-day trial, 10lb scale, $15 in postage and supply kit with labels and stamp sheets, for a total value of $135.

Now what

Investors may want to keep an eye out for a statement or competitive response from In specifically naming in its press release, Pitney Bowes is clearly taking aim at its rival's customer base.

Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends The Motley Fool has a disclosure policy.

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