What happened Stamps.com (NASDAQ: STMP) reported its third-quarter earnings results last night, crushing analyst estimates and forecasting full-year earnings well above consensus as well -- and then its stock collapsed today, down 10.4% as of 12:40 p.m. EST. So what Expected to report only $1.53 per share in pro forma profits for the third quarter, the online postage company earned more than twice that ($3.83) and reported better-than-expected revenue of $193.9 million as well, up 42% year over year. Stamps.com's earnings according to generally accepted accounting principles (GAAP) came in a bit short of the pro forma number at $3.30 per share. But that was still up 528% compared with last year. To top it all off, Stamps.com predicted it will end this year with pro forma profits between $10.35 and $11.35 per share, versus a consensus estimate of just $8.10. GAAP profits are likely to range from $7.30 to $8.27, well ahead of previous guidance. Earnings up, stock down? That's a puzzler. Image source: Getty Images. Now what In short, Stamps.com beat and raised in the third quarter, so why are shares down? Valuation is the easy answer. Even if Stamps.com maxes out its projected earnings this year, at a share price of about $227, its stock is valued at more than 30 times earnings, a price some might find rich. Still, with revenue growing 40% and better, I can't say a 30-times earnings multiple is at all unreasonable. If Stamps.com keeps growing as it has been, for any length of time, the stock really does look cheap. 10 stocks we like better than Stamps.comWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Stamps.com wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Stamps.com. The Motley Fool has a disclosure policy.Source