FedEx Stock Plunges on Profit Warning
Sep 16, 2022 By MarketDepth
FedEx (FDX:NYQ) stock is in freefall after a profit warning from the company and a gloomy outlook for the economy. The stock had the biggest drop on record after falling 22% intraday and down about 40% on the year. The poor profit forecast coupled with their look of the economy caused their stock to crater.
The company said their decline in package shipping volumes is an indicator of the overall economy as fewer people are buying products. In response to the warning, the company will freeze hiring, park aircrafts and close offices to lower their expenses. This news dragged UPS and other carriers down with it as the overall capital market is in the red.
“Global volumes declined as macroeconomic trends significantly worsened later in the quarter, both internationally and in the U.S.”CEO Raj Subramaniam
The fear of rate hikes and global economical slowdowns have sparked continued selling in the markets and ending the week in the red.