Why UPS Stock Is Falling Today
FedEx (NYSE: FDX) is out with a grim warning about the economy and dramatically scaled back expectations for its current fiscal year. Investors are worried about what the outlook means for FedEx archrival United Parcel Service (NYSE: UPS), sending UPS shares down as much as 6% on Friday morning.
It has been an interesting few years for shipping companies. UPS and FedEx saw demand for home deliveries soar during the pandemic, and the post-pandemic international supply chain bottlenecks created a lot of demand for their corporate delivery services. But more recently macro conditions have turned against these companies: Soaring inflation and a fall-off in demand in certain parts of the world have led some to worry that earnings are set to decline in the quarters to come.
Late Thursday, FedEx provided evidence that those fears are justified. UPS's archrival warned that earnings would fall well below expectations, and withdrew guidance for its full fiscal year. The issue, as expected, was a decline in global volumes.
Source Fool.com
