Why Shares of FedEx Are Falling Today
Shares of FedEx (NYSE: FDX) traded down more than 5% on Friday after the shipping giant suspended guidance and said it was tapping its available credit line. The COVID-19 coronavirus pandemic is raising volumes in some businesses while shrinking volumes in others, but the net result is likely to be lower profitability in the quarters ahead.
In a regulatory filing on Friday, FedEx said global business-to-business demand has been negatively affected by the pandemic, while lower-margin U.S. ground demand has increased as consumers are relying more on e-commerce. That, along with the internal changes FedEx is making in light of the outbreak, is going to impact profitability.
Image source: FedEx.
Source Fool.com
