By Kuldip K. Ambastha and Anil K. Ambastha
After reporting earnings results for the first quarter of its 2020 fiscal year ended August 31, 2019, the shares of FedEx (FDX), a package-delivery company, dropped by 12.9% on September 18. This drop is its biggest one-day percentage drop since the global financial crisis of 2008 and the fourth-largest one-day percentage decline in the company’s history. FedEx primarily dropped due to the effects of the ongoing U.S.A.-China trade war on its business, a weak 2020 fiscal year outlook, and the loss of Amazon (AMZN) as a customer. Also, Amazon may become a significant rival to FedEx in the future, through its Amazon Air entity.
Keywords – FedEx, Amazon, FDX, AMZN, package delivery, outlook, earnings, trade war, China, U.S.A., global financial crisis, GFC.
Disclosure – The principals of Ambastha Financial LLC have long equity and short option positions in FDX and no position in AMZN.
Disclaimer – No recommendations are being made via this post. Past performance is not an indicator of future performance. As an investor, you should do your own research and seek professional advice from a Registered Investment Adviser (RIA). You can lose money by investing in stocks and other instruments. Ambastha Financial LLC does not assume any responsibility (legal or otherwise) for any losses that may occur as a result of actions taken based on this post. All content copyrighted © 2019 – Ambastha Financial LLC.