Amazon and FedEx have entered a package delivery deal, with FedEx becoming "one of several third-party partners to deliver packages" to Amazon customers.
Amazon.com Inc (NASDAQ:AMZN) announced that it has entered into a multi-year agreement with FedEx Corp (NYSE:FDX, ETR:FDX) to handle the delivery of large and bulky residential packages across the United States. The partnership marks a renewal of relations between the two companies after FedEx ended its contract with Amazon in 2019.
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FedEx Corporation (NYSE:FDX ) Bank of America Industrials, Transportation & Airlines Key Leaders Conference May 12, 2025 6:00 PM ET Company Participants Brie Carere - Executive Vice President & Chief Customer Officer Jenifer Hollander - Vice President, Investor Relations John Dietrich - Executive Vice President & Chief Financial Officer Conference Call Participants Ken Hoexter - Bank of America Ken Hoexter Everybody, we're going to go ahead and get started. Welcome to our 32nd Annual BofA Industrial, Transportation and Airlines Key Leaders Conference, the 24th one that I've hosted.
The deal may signal a thaw in relations between FedEx and Amazon.
Fortune and Korn Ferry's survey identified the top 50 Most Admired Companies, focusing on criteria like investment value, management quality, and social responsibility. Four dividend-paying companies, including Pfizer and Nordstrom, met the "safer" qualification with free cash flow yields exceeding dividend yields. Analysts estimate net gains of 19.58% to 41.46% for top Fortune 50 WMA companies by May 2026, with Novo Nordisk leading.
Amazon says the Memphis, Tenn., company will join other third-party partners including United Parcel Service and the U.S. Postal Service that regularly work alongside Amazon's last-mile delivery network to balance capacity.
Amazon has partnered with FedEx to fill some delivery gaps left by UPS. UPS announced earlier this year that it would significantly reduce deliveries for Amazon.
The U.S. Postal Service Board of Governors selected former Waste Management CEO David Steiner as postmaster general. Steiner, who is a board member of shipping giant FedEx, will succeed former Postmaster General Louis DeJoy, who resigned in March.
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FedEx (FDX) closed the most recent trading day at $213.41, moving -1.65% from the previous trading session.
FedEx's share price is down a staggering 31% from November highs, following a mixed Q3 earnings and the 2025 market correction fueled by tariff tensions. Despite short-term headwinds, FedEx still has sturdy financials, excellent efficiency and profitability metrics, and debt management. The company is on track to deliver $8 billion in cost savings with the DRIVE and Network 2.0 programs, enhancing long-term efficiency and free cash flows, potentially facilitating share buybacks.