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Industry Focus

Consumer Goods: Stamps.com Changes Course and CVS Doubles Down On Health

Industry Focus

The Motley Fool

Interview, Money, Consumergoods, Business, Businessnews, Ceo, Technology, Investing, Stocks, Energy, Fool, Financial, Economy, Healthcare, News, Banking, Motley, Tech, Business News, Investments

4.6854 Ratings

🗓️ 26 February 2019

⏱️ 24 minutes

🧾️ Download transcript

Summary

Stamps.com (NASDAQ: STMP) shocked the investing world when it said that it would be dropping its relationship with the United States Postal Service. That’s part of a major shift in the company’s business model and Industry Focus: Consumer Goods host Shannon Jones and Fool.com contributor Dan Kline break down what this news means for investors. Later in the show they talk about CVS (NYSE: CVS) another company that’s shifting its business model.

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Transcript

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0:00.0

Welcome to Industry Focus, the show that dives into a different sector of the stock market every single day.

0:08.0

Today is Tuesday, February the 26th, and we're talking consumer goods.

0:12.8

I'm your host Shannon Jones and I am joined in the studio by a very special guest,

0:17.4

none other than foolish contributor Dan Klein.

0:19.6

Back to very special, appreciate it.

0:21.1

You are very special. And I'm super excited to have you in the studio today because

0:25.9

we've got two big stories to talk about that have been in the news also not

0:30.0

known as Elon Musk or Tesla. But nonetheless, very important.

0:35.0

He may shop at both of these companies.

0:38.0

You never know with Elon Musk, right?

0:40.0

But anyhow, let's dive right in because I think we've got a lot to cover.

0:44.4

Let's start with the bigger story, and that would be with Stamps.com.

0:49.8

Shares of Stamps.com, and that's tickerer symbol STMP for our listeners out there.

0:54.0

Dropped as much as 58% Dan. On news late last week,

0:59.0

wiping out nearly $2 billion in market cap, Dan, for such a steady Eddie company like Stamps.com, which

1:06.8

for our listeners has been the leading provider of posted solutions for regular Joe's like

1:12.2

you and I and also business customers. What in the

1:15.4

world happen when shares can drop 58%? Well basically they are no longer going to

1:20.4

be able to sell stamps and we've thrown around a lot of jokes about this.

1:24.2

You know, this would be like a Flowers.com

1:26.6

was just in the gym business.

1:28.4

But essentially, they're losing their exclusive deal

...

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