UPS reduces Amazon shipments, Lowers 2025 forecast; shares drop

economictimes.indiatimes.com:

UPS Reveals Q4 Performance & Profit Beat Expectations

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1. UPS's Q4 revenue was $25.3 billion, slightly below the predicted $25.42 billion.
   
   
2. The company made more profit than expected. They earned $2.75 per share, surpassing the $2.53 estimate.
   
3. Despite challenges in the e-commerce sector, UPS showed resilience, showing they can handle changes in the market.
   

Drastic Reduction in Amazon Deliveries; UPS Stock Takes A Hit

The announcement of reduced Amazon deliveries by UPS was unexpected. This means Amazon deliveries will be cut by 50% in the next 18 months, marking a major shift in UPS’s business model. This is an important decision because Amazon brought in a lot of money for UPS in 2023 (11.8% of their total).

UPS is cutting back on low-profit shipments and focusing on more profitable areas, causing a 13% stock fall. While it may help in the long run, short-term challenges and reliance on Amazon remain a concern.

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