Here's Why UPS Shares Got Crushed Today
Shares in (NYSE: UPS) were down by 9.8% as of 11:45 a.m, as the market reacted negatively to the news that Amazon.com (NASDAQ: AMZN) had launched Amazon Supply Chain Services (ASCS), a business that offers a direct challenge to one of UPS's core end markets, namely small and medium-sized businesses (SMB).
It's widely reported that UPS is voluntarily "gliding down" its delivery volumes for Amazon. UPS aims to lower its Amazon volumes by 50% from the start of 2025 to the middle of 2026. The move makes perfect sense, as many of the deliveries were low- or even negative-margin for UPS, and the company continues to migrate its network toward more profitable deliveries in its core end markets, such as SMBs and healthcare.
That said, it appears ASCS could pose a significant threat to UPS. The announcement couldn't have been any clearer. Just as Amazon developed cloud infrastructure to better run its business and then began offering its services to external customers as Amazon Web Services, so Amazon plans to sell its logistics and shipping capabilities to external customers as ASCS.
Source Fool.com
United Parcel Service Inc. Aktie
Die Community zeigt großes Interesse an United Parcel Service Inc. mit vielen Buy- und wenigen Sell-Einschätzungen.
Ein leicht positives Kursziel von 102 € für United Parcel Service Inc. gegenüber dem aktuellen Kurs von 88.12 € wird gesehen.
