Stamps.com (STMP) has been a battleground stock for several years now. Short sellers have argued that Stamps.com revenue and margins are unsustainable, built off the back of agreements with the United States Postal Service that eventually will be renegotiated.
Bulls, in turn, point to impressive growth and a long-term tailwind from the expanding share of sales executed online. The bears have won of late, with STMP down 46% from its 52-week high. But the stock still has better than tripled since the beginning of 2015. The political battle, however, has yet to really play out.
Reports this summer that the USPS was considering extensive changes sent STMP tumbling 10% in a single session. A final report this month that seemed to suggest much more muted alterations sent the stock flying in the opposite direction.
With President Trump occasionally voicing his displeasure with the money-losing ways at the USPS, however, more changes could be on the way. At the very least, STMP shareholders do face the risk that a single Presidential Tweet could move the stock on any given trading session.