What Happened?
Shares of shipping and mailing solutions provider Pitney Bowes (NYSE:PBI) jumped 10.6% in the morning session after the U.S. Postal Service (USPS) announced new postage rate increases set to take effect on July 13, 2025. The USPS revealed that prices for its mailing services will rise by an average of 7.4%, which includes a 5-cent increase for a First-Class Mail Forever stamp to $0.78.
For Pitney Bowes, which provides shipping and mailing technology and services, these rate hikes can be a positive catalyst. The company's metered mail solutions offer customers a discount compared to the retail stamp price, and this savings becomes more pronounced as overall rates go up. The new structure maintains a 4-cent discount for metered letters, potentially driving more businesses toward Pitney Bowes' offerings to manage and mitigate rising postage costs.
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What Is The Market Telling Us
Pitney Bowes’s shares are quite volatile and have had 16 moves greater than 5% over the last year. But moves this big are rare even for Pitney Bowes and indicate this news significantly impacted the market’s perception of the business.
Pitney Bowes is up 72.4% since the beginning of the year, and at $12.45 per share, has set a new 52-week high. Investors who bought $1,000 worth of Pitney Bowes’s shares 5 years ago would now be looking at an investment worth $4,787.
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