Amazon may not have the same shipping volume headaches as FedEx
ablokhin

Amazon (NASDAQ:AMZN) shed more than 2% last Friday after FedEx (FDX) rattled the transportation and e-commerce sectors with a warning that shipping volume has been declining on a weekly basis since June. FedEx CEO Raj Subramaniam also added to the worries when he stated that he expects the global economy is going into a worldwide recession.
Bank of America noted that FedEx's (FDX) commentary included the shocker that business with its top two clients (Target and Walmart) was lower than expected, which the firm sees as another cautionary data point for Amazon. However, BofA is confident that Buy-rated Amazon (AMZN) could be seeing market share gains and should be more overall resilient than peers to some of the macro pressures.
Analyst Justin Post's AMZN breakdown: "1) Amazon no longer ships with Fedex; 2) Amazon has well over 50% of volumes in the US, 3) Amazon likely has a higher-income avg consumer than Big-3 competitors (Walmart, Target, EBAY), and saw no discernable trade-down in Q2 away from discretionary items; 4) With Amazonâs wide third party selection and fast delivery speeds, we expect some share gains from competitors that may be using Fedex."
BofA expects added Q3 strength for AMZN vs. the industry due to Prime Day.
Shares of Amazon (AMZN) fell 1.08% premarket on Monday to $122.34 vs. the 52-week trading range of $101.26 to $188.11. FedEX (FDX) shed 1.07% in the early session to follow on its historic 21% drubbing on Friday.
AMZN briefly slipped below its 100-day moving average during the premarket session.