Sunday, December 22, 2019

FedEx takes a beating while Amazon gets vengeance

FedEx had a rough week.
On Sunday, Amazon announced third-party sellers could not use FedEx's Ground and Home shipping for Prime services. The logistic company's stock took a hit on the news.
The move comes after FedEx ditched Amazon twice this year. First, in June when FedEx Express cut its US business with Amazon, and then in August when FedEx Ground followed suit.
To make matters worse for FedEx, the company reported disappointing earnings on Thursday which were described in a note by Deutsche Bank's Amit Mehrotra as "breathtakingly bad." The numbers were so bad in fact, that by Friday morning some $3.5 billion of the company's market value had been wiped out.
Amazon dropping FedEx right before Christmas and right before the company's earnings was brilliant timing, experts told Business Insider's Rachel Premack.
"FedEx broke up with Amazon and Amazon is now giving them a stick in the eye," Sterling said.

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