STMP stock is witnessing heavy buying activities on Tuesday as Stamps.com (NASDAQ:STMP) customers are provided access to specially discounted UPS shipping rates.
Big News for STMP Stock
Internet-based shipping and mailing service provider Stamps.com announced that it has reached a significant deal with the United Parcel Service (NYSE:UPS). By way of the landmark deal, Stamps.com users will receive discount rates from UPS with regards to shipping and mailing services. The discounted rates are part of the Digital Access Program initiative that was started by UPS recently.
It is a significant deal since it could lead to more traffic from Stamps.com and also attract new users to the website in the coming weeks. Considering the fact that the festive season is approaching, it is a particularly important deal for STMP stock. The true scope of the deal with Stamps was announced by UPS late Monday.
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The announcements were made after the markets closed on Monday, and the Stamps.com stock soared as much as 22% at $93.10.
In its statement, the company said, “This new collaboration with UPS will make UPS shipping services available to Stamps.com’s customers at attractive discounts of up to 55 percent off daily rates, including various waived surcharges.”
2019 has been a tough year for Stamps and its stock. Following the termination of its exclusive partnership with the US Postal Service, the stock has been pounded for most of the year. STMP stock is down by as much as 40% in 2019 so far, so this deal with UPS has come as a boost at the right time. The company had to completely change its strategy, but in the end, Stamps.com managed to partner with another big-ticket shipping company.
It remains to be seen what sort of long-term effect this deal will have on STMP stock. That being said, it is definitely a stock that should be on investor watch lists.
Featured image: DepositPhotos © zentilia
