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Why Stock Just Dropped 7%

By Rich Smith - Feb 12, 2018 at 12:45PM

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Amazonian worries could be to blame.

What happened

Shares of postage payment facilitator (STMP) dropped as much as 11% in early trading Monday, before reviving to book "only" a 7.1% loss as of 12:15 p.m. EST. hasn't reported anything noteworthy today, nor are its earnings out just yet.

So what

Instead, I think you can blame (AMZN -5.14%) for this one.

Three months ago, reported a big earnings beat, but said Amazon was bringing some of its "Fulfillment by Amazon" postage billing in-house and that might affect's business going forward. "Fulfillment by Amazon [is] just another one of the carriers that we support," said CEO Kenneth McBride, and so presumably Amazon's move wouldn't doom's business.

A rhinoceros grazing on grass and standing in the crosshairs of a telescope.

Amazon targets companies with big margins -- and may have gotten caught in the crossfire. Image source: Getty Images.

But investors were not reassured -- and sold off stock.

Today, I think's latest sell-off can likewise be traced back to Amazon and its announcement last week that it's launching a "Shipping With Amazon" service to deliver packages for businesses that sell goods on its website -- and eventually for businesses that don't even sell on its website. That news torpedoed the stocks of shipping companies FedEx (FDX -0.16%) and UPS (UPS -1.04%). It only makes sense that it would affect's stock as well.

Now what

Is Amazon trying to drive out of business every other company involved in shipping packages from Point A to Point B? Maybe, maybe not. But one thing's for sure: CEO Jeff Bezos is famous for his mantra:"Your margin is my opportunity."

That makes, which sports a 34.5% operating profit margin, look like a big fat opportunity for Bezos.

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