Amazon takes to the sky as it looks to take the lead from UPS, FedEx
- 3 months ago
Morgan Stanley has stated that the delivery service market has missed out on Amazon Air and the risk it poses to the big guns such as UPS and FedEx as their shares fell respectively.
UPS shares took a tumble, down 6.4% while FedEx dropped 5.7%, since their respective highs they have both dropped 20.4% and 21.1% and looking to be heading into the bear market.
Morgan Stanley’s Ravi Shanker stated that, “For now, investors are focusing on Amazon’s last-mile efforts but we believe the challenge in Air is just as relevant”, continuing, "but given Amazon's plans to take delivery of 40 planes and build an air hub that could potentially handle 100 planes, we've taken a closer look at the impact of Amazon Air (its in-house Express Air network) on UPS/FedEx Air volumes."
Source: Smart Trend Team