Shares were down $23.67, or 13.7%, to $149.63 in afternoon trading Wednesday. That's the stock's worst one-day percentage drop since the depths of the recession in 2008.
FedEx is hurt by a slowdown in international air shipping and higher costs in its ground-delivery business. The company said late Tuesday that profit fell 11% to $745 million in its fiscal first quarter, missing Wall Street expectations. It predicted full-year adjusted earnings of $11 to $13 per share, well below analysts' $14.68 prediction.
UBS analyst Thomas Wadewitz says pressure on FedEx profit margins is likely to increase and there's no relief in sight for high capital spending.
They can also blame their over exorbitant pricing and failure to deliver on schedule consistently.
Or it could be that UPS is cheaper.
They are cutting back deliveries by Amazon. What would they expect to happen?
Nah Amazon is cutting ties with FedEx. That's the stock reaction. BuyUPS
Blamed Trump* (fixed it)
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