UPS keeps sliding after Amazon's entry into the shipping business
Justin Sullivan / Getty Images
- Shares of UPS were down Monday morning following Amazon's announcement last week that it would launch its own shipping service.
- UPS and FedEx fell on the news Friday, and UPS' stock was down on Monday as well.
- Amazon has made several moves in the past to develop its own shipping and logistics service.
- Click on UPS and FedEx to see their stock price move in real time.
Shares of UPS fell for the second straight session Monday morning following the news Amazon plans to launch its own shipping service that would directly compete with the two largest US shipping companies, UPS and FedEx.
UPS's stock was down 0.71% at $105.63 per share. It was trading 4.67% below its stock price of $110.83 per share on Thursday, before the news broke.
Shares of the Atlanta-based UPS fell Monday while its rival, FedEx gained, possibly because of its heavier reliance on Amazon for revenue. UPS carries about 30% of Amazon's total US shipments, which is the equivalent of $1 billion in annual revenue from Amazon. By contrast, Amazon only accounts for 3% of FedEx's annual revenue.
FedEx recouped its losses from Friday. It was trading up 0.74% at $237.05 a share.
Amazon has pushed into the delivery space in the past. Last October, the Seattle-based company said it would deliver packages on behalf of third-party sellers on its website. The company has also moved into delivery and logistics through its leasing of aircraft and ocean freight equipment.
UPS's stock was down 14.57% for the year.
Read more about why Amazon's own delivery service may actually be a boost for grocery stores.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
- India not benefiting from democratic dividend; young have a Kohli mentality, says Raghuram Rajan
- Indo-Gangetic Plains, home to half the Indian population, to soon become hotspot of extreme climate events: study
- 7 Vegetables you shouldn’t peel before eating to get the most nutrients
- Gut check: 10 High-fiber foods to add to your diet to support digestive balance
- 10 Foods that can harm Your bone and joint health
- 6 Lesser-known places to visit near Mussoorie