Wall Street may be concerned about the competition, FedEx Corp. before the e-commerce aircraft manufacturer Amazon.com Inc. puts Amazon Air, but FedEx has just eliminated those concerns and said that's already enough.
During the package After the analysts' conference call with analysts, the company asked a few questions about the Amazon
Threat. David Campbell, a Thompson Davis & Co. analyst, asked how FedEx is cutting off its anti-Amazon strategy.
Frederick Smith, Chief Executive of FedEx, initially said, "I'm not really sure how to answer that question," a transcript provided by FactSet said. He said Amazon is a "wonderful company" and a "good customer" of FedEx, but he does not currently see it as a competitor and doubted it would ever be so for many reasons. [1
& # 39; So I do not know what to say except what I just said. I think the prospects of this company "being disturbed", which, as I said, keeps coming back to quote an earlier statement, is fantastic. So I'll leave it at that. "
That is, the FedEx stock
fell 12.2% to its lowest level since September 2016, after the company had warned late Tuesday of a slowdown in international business, announced cost-cutting measures and lowered its earnings prospects would have.
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CEO Smith tried to explain his casualness by saying Wall Street's concerns were a "misunderstanding."
He said the Amazon Air network is set up to move inventory within the "amazing" Amazon system. It moves non-stock items and low turn-turn products and inventory items for Amazon customers who can not duplicate inventory. Therefore, Smith said it was planned differently than by FedEx or its real competitor United Parcel Service Inc.
See also : UPS, FedEx stocks are sinking to accelerate the losers of transportation after Morgan Stanley stresses the risk of Amazon Air ,
Meanwhile, when Merrill Lynch analyst Ken Hoexter asked whether FedEx had seen any impact from Amazon Air, and Rajesh Subramaniam, Chief Marketing and Communications Officer, agreed,
"Ken, the brief answer to that question is No. "
And when Dan Ronan of Transport Topics asked what concerns FedEx has in light of recent Amazon Air expansion at Northern Kentucky, Rockford International and Alliance airports, Subramaniam replied:" Well, Dan, like As we have already mentioned, we do not have concerns. "
FedEx shares have fallen 33.1% in the last three months, while competing UPS shares have fallen 20.2% and non-competitive Amazon shares down 22.4%. In comparison, the Dow Jones Transportation Average
has lost 20.6% and the Dow Jones Industrial Average
lost at the same time 11,7%.