Stamps.com Licked Despite Q3 Beat, Increased Guidance

Stamps.com Inc. STMP shares are trading lower by $42.50, or 19 percent, at $178.75 in Friday's session.

Despite a Q3 EPS beat of 73 cents along with a sales beat of $3.5 million, the stock is deep in the red. Even much higher FY 2017 guidance (from $7.50-$8.50 To $9.00-$10.00) has attracted sellers instead of buyers.

Keep in mind, Stamps ended 2016 at $114.65 and more than doubled at its peak on Oct. 26 at $233.13.

After a lower open, Stamps managed a brief bounce to $197.13 before continuing its move lower. The ensuing decline took the stock to $172.08, but has returned to the upper $170.00 handle. That low puts the stock in an area ($154.00 to $178.00) that saw no trading when it leaped from $151.30 to $205.60 on Aug. 3 following an impressive Q2 beat.