Did Amazon's Recent Move Just Make FedEx and UPS Stock Less Investible?
As a consumer, you probably haven't even noticed it, but last month Amazon (NASDAQ: AMZN) quietly restarted the third-party delivery service it shuttered in the midst of the pandemic.
The service is not for everyone to use ... at least not yet. In fact, its current list of eligible customers is limited to merchants currently using Amazon.com as a selling platform. That doesn't mean the parcel in question must be sold through Amazon's online mall, though. The merchant just has to be an Amazon seller. It's also a low-frills service for the time being, limiting the transportation of these goods to ground-based options and promising no more than a five-day delivery time.
Nevertheless, this is a prospective seed that mainstream logistics companies, like United Parcel Service (NYSE: UPS) and (NYSE: FDX), don't want to see planted. Both delivery giants are already struggling in their own ways. If and when Amazon expands this rekindled initiative, FedEx and UPS will face even stiffer headwinds.
Source Fool.com
Fedex Corp. Stock
The stock is an absolute favorite of our community with 34 Buy predictions and no Sell predictions.
With a target price of 281 € there is a positive potential of 21.38% for Fedex Corp. compared to the current price of 231.5 €.
