Stamps.com is back on track, while Boeing is flying off the track.
Stamps.com is getting back on track. Less than a year ago, the online shipping platform provider lost more than 80% of its value. Abrupt termination of its life-time exclusive partnership with the USPS made investors assume the worst, and run for the hills. Since then, the company focused on its transition from single-carrier operations to multi-country, multi-carrier business model, and the focus has started to pay off. The latest partnership with UPS has renewed investors' optimism about the future of the company. The stock is not back to its initial price level yet. However, its wild price swings in 2019 are nothing short of a fascinating tale of extreme pessimism.
Boeing's corporate crisis is far from being over. The stock price has been falling steadily on the news that the company's employees did not share material safety information with the Federal Aviation Administration. While investors would have loved to see the crisis is under control, but until the aircraft are not back in the air, this crisis is nowhere close to being over. Typically, corporate crises of this nature take much longer to settle, and the financial impact is much more significant than the initial estimations. A few months after the initial shock, investors gradually warmed up to the idea that the worst was behind, and the stock price was a steady climb to its earlier all-time high level. However, the reality struck again for yet another corporate crisis to reveal its true nature.
Disclaimer: Hey folks, this is Hoda, and I own shares of Stamps.com.