https://wccftech.com/fedex-stock-plunges-latest-amazon-victim/

FedEx (NYSE:FDX) is now the latest victim of Amazon’s (NASDAQ:AMZN) effort to expand into shipping and delivery services. Four Wall Street firms have quickly issued a downgrade for the stock including BMO (NYSE:BMO), Deutsche Bank (ETR:DBK), KeyBanc (NYSE:KEY), and Stifel (NYSE:SF) after the firm reported earnings that missed estimates and cuts to its full-year earnings forecast.  CNBC reports, “Management blamed the loss of Amazon business, trade issues, and foreign business related to TNT Express integration.” The company share price has dropped sharply today and is down approximately 13.75% in late-day trading. 

The general consensus from Analysts appears to be that FedEx management was not taking responsibility for the recent performance of the company and that global conditions were causing additional pressure for the firm after the decision to end its contract with Amazon reported earlier in the year and its huge loss of nearly $2 billion in Q4 of 2018.  FedEx CEO Fred Smith during Tuesday’s earnings call stated: “…challenges increased somewhat due to the decision to not renew our largest Amazon contract and deepening trade disputes.” Alan Graf EVP & CFO stated later that, “The loss of volume from Amazon had a negative impact to the quarter.”