FedEx slips after canceling its ground-shipping deal with Amazon

• FedEx fell as much as 3% Wednesday after the company announced it will cancel its ground-shipment contract with Amazon.
• The shipment and logistics company ended its air-delivery contract with Amazon in June.
• The open rivalry between the two companies is months young, as FedEx CEO and founder Fred Smith previously called the collaboration "fantastical." Amazon is now investing in its own delivery network to compete with FedEx.
• Watch FedEx trade live here.

FedEx shares fell by as much as 3% on Wednesday after the company announced it will end its partnership with Amazon.

The deal between the two companies will expire at the end of August, when their ground-delivery contract was set to end. FedEx canceled its air-delivery contract with Amazon in June.

"This change is consistent with our strategy to focus on the broader e-commerce market, which the recent announcement related to our FedEx ground network have us positioned extremely well to do," FedEx said in an emailed statement.

The delivery and logistics company attributed just over 1% of its 2018 sales to Amazon. In its July annual report, FedEx mentioned Amazon six times in a section titled "We face intense competition."

Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up.

The open rivalry is just months young. FedEx CEO and founder Fred Smith said in December the idea of a business threat from Amazon was "fantastical."

Amazon has been rapidly building up its delivery business since 2015. It began hiring thousands of full-time drivers in November to deliver packages from Amazon outposts across the US - a move that directly competes with FedEx's business.

Despite Amazon's investment in a new shipping network, Goldman Sachs analysts estimate it could cost an additional $122 billion to catch up to industry leaders FedEx and UPS.

FedEx traded at $157.43 per share as of 10:20 a.m. ET Wednesday, down about 3.1% year-to-date. The stock fell amid a marketwide sell-off.

The shipping and logistics company has 21 "buy" ratings, seven "hold" ratings, and two "sell" ratings from analysts, with a consensus price target of $186.44, according to Bloomberg data.

Now read more markets coverage from Markets Insider and Business Insider:

CVS jumps on earnings beat as its merger with insurance company Aetna begins to pay off

The past 4 Fed chairs teamed up for an op-ed warning against political meddling amid pressure from Trump to cut rates further

'Not investing in China is very risky': Billionaire investor Ray Dalio explains why he's still all-in despite recent trade-war fireworks