Stamps.com: Needham Downgrades on Slower Growth
Stamps.com (STMP) shares dropped sharply today after Needham’s Mark May cut his rating on the stock Under Perform from Hold.
May notes that the company has a large cash position–about $4.64 a share–which generates about 50 percent of its pre-tax income. A recent drop in bond yields, he cautions, will result in a hit to the company’s earnings. He also expect slower PC Postage subscriber growth given the weakening macro environment.