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UPS Shares Plunge 16% Amid Amazon Business Cuts

1/30/2025

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Summary

Story summary

UPS shares dropped over 16% following disappointing Q4 results, reporting $1.72 billion net income on $25.3 billion revenue.
The company plans to cut business with Amazon by 50% to pursue more profitable opportunities.
CEO Carol Tomé emphasized this strategy aims to enhance margins despite anticipated revenue declines.
Analysts are split on the long-term effects, with mixed opinions on the strategy's risks and benefits.
UPS forecasts 2025 revenue at $89 billion, falling short of analyst expectations exceeding $95 billion.

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Story summary

UPS shares dropped over 16% following disappointing Q4 results, reporting $1.72 billion net income on $25.3 billion revenue.
The company plans to cut business with Amazon by 50% to pursue more profitable opportunities.
CEO Carol Tomé emphasized this strategy aims to enhance margins despite anticipated revenue declines.
Analysts are split on the long-term effects, with mixed opinions on the strategy's risks and benefits.
UPS forecasts 2025 revenue at $89 billion, falling short of analyst expectations exceeding $95 billion.