As FedEx stock crashes after brutal profit warning, analyst points to a lurking Amazon

FedEx has blown three tires before the peak holiday shipping season, and chatter on the Street is that mighty Amazon may have played a role.

“It makes sense to see Amazon to trade off with this but there could also be a competitive element going on here too,” JPMorgan’s Jack Atherton wrote in a note to clients. “Coincidentally, Amazon’s Seller conference has been ongoing for the last 2 days which focused heavily on new features for Buy with Prime as it further tries to break down Shopify’s moat. Amazon also launched free shipping software for sellers, and discounted shipping rates. Amazon has piled money into its logistics capability over the past few years, to the point it has excess capacity for its own needs and is hungry for more share which is being targeted through FBA (Fulfillment By Amazon) and could be weighing on FedEx. I’d be buying Amazon on weakness here.”

FedEx served up a brutal earnings pre-announcement after the close of trading on Thursday, sending shares…

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This article was written by and originally published on finance.yahoo.com